Your cousin trading actively in stocks that does not pay dividends and as part of long term investment portfolio. your cousin can buy the stock for $1100 per share and sell it for $1099 per share. he can borrow fund at 4.5% per year and invest funds at 4% per year for what range of one year forward prices does your cousin has no arbitrage opportunities and why?

Answer rating: 100% (QA)

Assuming that your cousin is borrowing and investing in the same currenc... View the full answer