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1.1 Suppose that the risk-free interest rate is 10% per annum with continuous com pounding and that the dividend yield yield on a stock is

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1.1 Suppose that the risk-free interest rate is 10% per annum with continuous com pounding and that the dividend yield yield on a stock is 4% per annum. The index is currently 401 and the futures price for a contract deliverable in four months is 405. What arbitrage opportunities does it create

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