Question: **Solve Using Excel**** 1) Consider a stock that is expected to pay no dividend in the next two years. The current stock price is $30,

**Solve Using Excel**** 1) Consider a stock that is expected to

**Solve Using Excel****

1) Consider a stock that is expected to pay no dividend in the next two years. The current stock price is $30, the current 2-year futures price is $31.20 and the risk-free rate is 1.5%. Show that there is an arbitrage opportunity What certain profit can you make per share of stock? Show the arbitrage strategy you would use (show all transactions and cash flows - now and 2 years from now)

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