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 two shares of Apple Inc. (APPL), one share of Google (GOOG), and ten shares of Microsoft (MSFT). Suppose the current stock prices of each individual stock are as shown below:

Stock	Price
APPL	$200.23
GOOG	$570.51
MSFT	$29.61

If the ETF is currently trading for $1200, what arbitrage opportunity is available? What trades would you make?

		sell one EFT and buy 2 shares of APPL, 3 shares of GOOG, and 10 shares of Microsoft.
		sell one EFT and buy 3 shares of APPL, 2 shares of GOOG, and 10 shares of Microsoft.
		buy one EFT and sell 2 shares of APPL, 1 share of GOOG, and 10 shares of Microsoft.
		buy one EFT and sell 2 shares of APPL, 10 shares of GOOG, and 1 share of Microsoft.
		do nothing, no arbitrage opportunity exists.