Question $20(1\mathrm{.}5$ points$)$

You are $100\%$ confident about three pieces of information as follows:

the current stock price of Kotori company: $108$

the amount of dividends Kotori will pay next year $($Kotori will pay dividends on an annual basis$)$: $17$

the stock price of Kotori one year later: $93$

Though you are broke, as a prestigious business school student, you can borrow money from the bank at a risk$-$free rate $4\mathrm{.}5\%.$ You can also borrow shares of Kotori from a brokerage company, and should return the shares in a year with a risk$-$free rate on the current value of shares. What profit$/$loss can you make of this situation?

Instructions: Round the result to two decimal places and do not put the $""$ symbol in the answer box. For example if you get a result of $-8\mathrm{.}0723$ then write $-8\mathrm{.}07$ in the answer box below.

Your Answer:

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