Angelina JOLI, CFA, was explaining arbitrage to her colleague Brad. "Ok, Brad, take the dice example used earlier. This time, the probabilities are listed below. So, in a fair game, here's the price to play, probabilities, and payoffs" Sum to Two 6-sided Dice 3 5 6 7 9 10 12 Price to Play $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Probability 1/36 2/36 3/36 4/36 5136 6/36 5/36 4/36 3/36 2/36 1/36 Winning Payoff $36.00 $18.00 $12.00 $900 57 20 $6.00 $ 20 $9.00 $1200$18.00 $36.00 "Are you with me so far? But, these probabilities are off. The actual dice look like this." #1 # 2 1 0.1667 0.1667 2 0 1667 0 0000 3 0.1667 0.1667 4 0 1667 1667 5 0.1667 0.3333 60 1667 0.1667 Which of the follow zero-investment portfolios will generate a positive arbitrage profit for you? Outcome Long on 2: Shorton 12 Long on 10: short on 12 Long on 12: short on o Long on a short on 7 Long on a short on 6