Question
Currently, if you save $100 at your bank for three years without withdrawal, you will have $112.5 at the end of the third year. 1.
Currently, if you save $100 at your bank for three years without withdrawal, you will have $112.5 at the end of the third year.
1. If US 1-year treasury promises $100 payoff in one year, what should be the fair price of the US 1-year treasury today?
2. If US 1-year treasury is currently trading at $95 dolloars, is there an arbitrage oppotunity and if so, how to gain the arbitrage profits? (Please provide the amount of the arbitrage profit and describe the specific actions to take)
3. What will happen to the price of the treasury once we start exercising the arbitrage strategy? And when will the arbitrage stop?
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Who Is Your Competition You Real Estate Wholesaling Questions Answers And Tools To Help Beginners Crush Their Fears And Stop Procrastinating
Authors: Nick Zalonis
1st Edition
1716097193, 978-1716097195
