Given the following data, what is the arbitrage with no transaction costs? What is the size of

Question:

Given the following data, what is the arbitrage with no transaction costs? What is the size of the transaction costs necessary to negate the arbitrage?
A. S&P 6-month futures contract.................$200
B. S&P current value.......................$190
C. 6-month interest rate.................... 6%
D. Present value of dividends on in S&P index over 6 months ... $4 Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...