problem 1 how could you perform Arbitrage?

problem 1 what is the present value of Arbitrage profit per future contract?

problem 3

1. 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 stocks in S&P index over 6 months $4 2. Assume that General Mills, a user of wheat, and wheat farmers have the same distri- butional assumptions about future wheat prices. Does a futures contract make eco- nomic sense from both points of view? If yes, why? 3. The spot rate (current rate) for Japanese yen 120 yen to the dollar, whereas the one- year futures rate is 115. If one-year interest rates in Japan are 4%, what is the implied one-year interest rate in the United States, assuming interest rate parity? an