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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
8. An investment bank engages in stock index arbitrage for its own and customer accounts. On a particular day, the S&P Index at the New York Stock Exchange is 602.25 when the futures contract for delivery in 90 days is 614.75. If the annualized 90-day interest rate is
8.00 percent and the (annualized) dividend yield is 3 percent, would program trading in- volving stock index arbitrage possibly take place? If so, describe the transactions that should be undertaken, and calculate the profit that would be made per each “share” of the S&P 500 Index used in the trade.
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