An Exchange Traded Fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of

3 shares of Hewlett-Packard (HPQ), 1 share of Sears (SHLD), and 3 shares of General Electric (GE). Suppose the current stock prices of each individual stock are as shown here:

Stock	Current Market Price
HPQ	$30
SHLD	$36
GE	$12

a. What is the price per share of the ETF in a normal market?

b. If the ETF currently trades for $144, what arbitrage opportunity is available? What trades would you make? (Ignore any transaction costs.)

c. If the EFT currently trades for $174, what arbitrage opportunity is available? What trades would you make? (Ignore any transaction costs.)