A non-dividend-paying stock is currently priced at $48.15 per share. A futures contract maturing in five months
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A non-dividend-paying stock is currently priced at $48.15 per share. A futures contract maturing in five months has a price of $48.56 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?
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Given Data Spot price 4815 Futures price 4856 Maturity months 5 Interest rate 4 Answer Im...View the full answer
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Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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