Question: Repeat the previous problem, assuming that the dividend yield is 1.5%. a. What is the no-arbitrage forward price for delivery in 9 months? b. Suppose

Repeat the previous problem, assuming that the yield is 1.5%.
a. What is the no-arbitrage forward price for delivery in 9 months?
b. Suppose a customer wishes to enter a short index futures position. If you take the opposite position, demonstrate how you would hedge your resulting long position using the index and borrowing or lending.
c. Suppose a customer wishes to enter a long index futures position. If you take the opposite position, demonstrate how you would hedge your resulting short position using the index and borrowing or lending.

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