The price of futures contract of ICICI Bank expiring on 29-July-2021 is INR 625.10 (as on 20-May-2021). The stock price of ICICI Bank on 20-May-2021 is INR 619.40. Is the futures contract fairly priced? If not, how can a i being a trader exploit the arbitrage opportunity? Please assume a risk-free rate of 6%.

Answer rating: 100% (QA)

To determine whether the futures contract is fairly priced we can use the costofcarry model which as... View the full answer