Question: An Exchange Traded Fund (ETF) is a security that represents a portlolio of individual stocks. Consider an ETF for which each share represents a portlolio

An Exchange Traded Fund (ETF) is a security that represents a portlolio of individual stocks. Consider an ETF for which each share represents a portlolio of 3 shares of Hewlet.Packard (HPQ), 2 shares of Sears (SHLD), and 3 shares of General Electric (GE). Suppose the current stock prices of each individual stock are as shown here: a. What is the price per share of the ETF in a normal market? b. If the ETF currently trades for $178, what arbliage opportunity is avaiable? What trades would you make? (lgnore any transaction costs.) c. If the EFT currently trades for $200, what arbitrage opportunity is avalable? What trades would you make? (ignore any transaction costs.)

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