Question
Alset, Inc. doesnt pay dividends and its stock is currently trading at $20.26 per share. The no-arbitrage price for its 1-year futures contract is $20.97
Alset, Inc. doesnt pay dividends and its stock is currently trading at $20.26 per share. The no-arbitrage price for its 1-year futures contract is $20.97 (1 contract is per 1 stock share). You have $10000 in cash and can open a margin account to trade futures with a 20% margin requirement. That is, if you want to open a position worth $1,000, you have to have at least $200 in your margin account.
Suppose you expect the stock price of Alset to go up to $26.34 per share in one year from now. If you decide to act on your beliefs, the profit you expect to make in 1 year is
Group of answer choices
A)$ 14852.65
B)indeterminate due to insufficient information
C)$ 12804.01
D)$ 2560.8
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