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1.It is often, stated that a stock index arbitrage trade is easier to implement when the stock index futures price is above its theoretical level

1.It is often, stated that a stock index arbitrage trade is easier to implement when the stock index futures price is above its theoretical level than when it is below that value. What institutional realities might statement true? Describe the steps involved in forming the arbitrage transaction in both circumstances extent. To the extent that the statement is valid what does it suggest that the ability of the stock index futures remain efficient?

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