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3. Suppose that the risk-free interest rate is 12% per annum with contin compounding and that the dividend yield on a stock index is 6%
3. Suppose that the risk-free interest rate is 12% per annum with contin compounding and that the dividend yield on a stock index is 6% per ani The index is standing at 400, and the futures price for a contract deliver in four months is 390. What arbitrage opportunities does this create
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