Cash and Carry Arbitrage (Elan R52 Q11)

Question asks for the return per dollar invested from the arbitrage trade.

Particulars: Stock index currently trading at 734.35, dividends over contract term are $6, risk free rate is 5%, futures contract expires in 205 days and priced at 758.50

No arbitrage futures price = 734.35 * (1.05)^(205/365) - 6 = 748.75.

So we short the futures contract and buy the index

at t = 0:

Short futures at 758.50

borrow 734.35

buy index

at contract expiration:

repay loan: 734.35 * (1.05)^(205/365) = 754.75

deliver index and receive 758.50 + $6 dividends

Total profit = 758.50 + 6 - 754.75 = 9.75

Return = 9.75/734.35 = 1.33%

Answer is C, 7.43%.

Am I doing something wrong?