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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Futures Arbitrage A non-dividend-paying stock is currently priced at $78.15 per share. A futures contract maturing in five months has a price of $79.25 and the risk-free rate is 4 percent. Describe how you could make an arbitrage profit from this situation. How much could you make on a per-share basis?
Futures Arbitrage A stock is currently priced at $53.87 and the futures on the stock that expire in six months have a price of $55.94. The risk-free rate is 7 percent, and the stock is not expected to pay a dividend. Is there an arbitrage opportunity here? How would you exploit it? What is the arbitrage opportunity per share of stock?
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