eBook Problem 15-07 An investment bank engages in stock index arbitrage for its own and customer accounts. On a particular day, the index for the New York Stock Exchange is 601.25 when the index futures contract for delivery in 90 days is 616.25. If the annualized 90-day interest rate is 8.00% and the annualized) dividend yield is 4%, would program trading involving stock Index arbitrage possibly take place? If so, describe the transactions that should be undertaken 1. Borrow the money to buy 1 index share", take a short position in the futures, and deliver the share at the future date. 11. Sell 1'index share", lend the money, take a long position in the futures, receive the funds tent with interest, and repurchase 1 "index share" III. Borrow the money to buy 1 "index share", take a long position in the futures, receive the dividend on index share" -Select- Calculate the profit that would be made per each "share of the index used in the trade. Do not round intermediate calculations. Round your answer to the nearest cent. eBook Problem 15-07 An investment bank engages in stock index arbitrage for its own and customer accounts. On a particular day, the index for the New York Stock Exchange is 601.25 when the index futures contract for delivery in 90 days is 616.25. If the annualized 90-day interest rate is 8.00% and the annualized) dividend yield is 4%, would program trading involving stock Index arbitrage possibly take place? If so, describe the transactions that should be undertaken 1. Borrow the money to buy 1 index share", take a short position in the futures, and deliver the share at the future date. 11. Sell 1'index share", lend the money, take a long position in the futures, receive the funds tent with interest, and repurchase 1 "index share" III. Borrow the money to buy 1 "index share", take a long position in the futures, receive the dividend on index share" -Select- Calculate the profit that would be made per each "share of the index used in the trade. Do not round intermediate calculations. Round your answer to the nearest cent