Question: Question 7. Box Spread (9 marks) Use the data on Suncor Inc. presented in Question 6 above to answer this question. a. Construct a box-spread

Question 7. Box Spread (9 marks) Use the data on Suncor

Question 7. Box Spread (9 marks) Use the data on Suncor Inc. presented in Question 6 above to answer this question. a. Construct a box-spread using the March option contracts with exercise prices of 24 and 25. (2.5 marks) Construct a protable riskless arbitrage opportunity using this box-spread, with the requirement of $0 investment today. Calculate the NPV of the riskless prot. (6.5 marks)

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