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

An Exchange Traded Fund (ETF) is a security that represents a portfolio of individuals stocks. Consider an ETF for which each share represents a portfolio of 1 share of Hewlett-Packard (HPQ), 2 shares of Sears (SHLD), and 2 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 $110, what arbitrage opportunity is available? What trades would you make? c. If the EFT currently trades for $140, what trades would you make? a. What is the price per share of the ETF in a normal market? The price per share of the ETF in a normal market is $

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