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(a) Explain how market-markets or arbitrageurs use the cash-and-carry strategy and reverse cash-and-carry strategy to make a risk-free profit. Use a transaction and cash flows
(a) Explain how market-markets or arbitrageurs use the cash-and-carry strategy and reverse cash-and-carry strategy to make a risk-free profit. Use a transaction and cash flows table to illustrate your explanation. You may consider the underlying asset as a stock. [8]
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