An Exchange Traded Fund (ETF) is a security that represents a portfolio of individual stocks. ETFs can be purchased on the stock exchanges like individual stocks. Assume that you can exchange the ETF for the underlying stocks and that you can form an ETF unit using the underlying stocks. In addition, assume that you can purchase and short-sell stocks and ETFs without any limitations.

The Lonestar ETF consists of 5 shares of Exxon Mobil (XOM), 8 shares of AT&T (T), and 1 share of Texas Instruments (TXI). The current bid and ask prices of the three stocks and the Lonestar ETF are listed below:

Security

Bid Price

Ask Price

Exxon Mobil (XOM)

$36.05

$36.08

AT&T (T)

$28.87

$28.90

Texas Instruments (TXN)

$156.75

$156.80

Lonestar ETF

$569.60

$569.70

Are there any arbitrage opportunities? If yes, summarize the exact transactions that you suggest to perform the arbitrage. If not, explain why there are no arbitrage opportunities.