four investment opportunities. One of them features a significant misprice that needs to be identified

carry out calculations for all the four opportunities to identify the significant misprice in one of them (significant in this case means beyond rounding errors and leading to a risk-free profit via arbitrage above 2

The trader also has access to bonds at the UK market interest rate at 0.67%.

1)Currency trading On a currency market, the following currency exchange rates are listed.

GBP USD EUR CHF

1 GBP = 1.0000 1.2659 1.1593 1.2972

1 USD = 0.7899 1.0000 0.9158 1.0247

1 EUR = 0.8626 1.0920 1.0000 1.1190

1 CHF = 0.7709 0.9759 0.8937 1.0000

2)Futures for stocks with dividend

The following financial data for the supermarket sector was available on 1 February 2021. The fair strike price for futures contracts is given for delivery of shares on 1 September 2021. All prices are given in GBX (pence).

Share Value Dividend Payment date Futures

Tesco 211.91 1.75 1 May 210.99

Sainsburys 282.78 0.75 1 March 283.14

Morrisons 237.33 1.25 1 June 237.01

3)Futures for commodities with storage costs

The following financial data for trading in a variety of commodities was available on 1 January 2021. The fair strike price for the futures contracts is given for delivery of the commodity on 1 September 2021. All prices are given in GBP (pounds) per ounce. Storage costs are given per ounce for four months of storage and should be paid in advance.

Spot price Storage cost per ounce Futures

Gold 1021.67 8 1042.3

Iridium 1122.48 6 1139.54

Palladium 1017.29 5 1031.88

4)Option portfolio trading The following financial data for FTSE-traded companies was available on 1 February 2021. All prices are given in GBX (pence). The option price listed is for European options that can be exercised exclusively on 1 July 2021 for the stated strike price. You may assume that no dividend is payable between 1 February and 1 July 2021.

Share Value Call option Put option Strike price

AstraZeneca 5725 357.85 412.68 5800

Diageo 3025 173.79 240.15 3100

Unilever 4260 260.58 288.60 4300

four investment opportunities. One of them features a significant misprice that needs to be identified carry out calculations for all the four opportunities to identity the significant misprice in one of them (significant in this case means beyond rounding errors and leading to a risk-free profit via arbitrage above 2 The trader also has access to bonds at the UK market interest rate at 0.67%. 1)Currency trading on a currency market, the following currency exchange rates are listed. GBP USD EUR CHF 1GBP = 1.0000 1.2659 1.1593 1.2972 1 USD = 0.7899 1.0000 0.9158 10247 EUR = 0.8626 1.0920 1.000 1.1190 1 CHF = 0.7709 0.9759 0.8937 1.0000 2)Futures for stocks with dividend The following financial data for the supermarket sector was available on 1 February 2021. The fair strike price for futures contracts is given for delivery of shares on 1 September 2021. All prices are given in GBX (pence) Share Value Dividend payment date Futures Tesco 211.91 1.75 1 May 210.99 Sainsbury's 282.78 0.75 1 March 283.14 Morrisons 237.33 1.25 1 June 237.01 3)Futures for commodities with storage costs The following financial data for trading in a variety of commodities was available on 1 January 2021. The fair strike price for the futures contracts is given for delivery of the commodity on 1 September 2021. All prices are given in GBP (pounds) per ounce. Storage costs are given per ounce for four months of storage and should be paid in advance. Spot price Storage cost per ounce Futures Gold 1021.67 8 1042.3 Iridium 1122.48 6 1139.54 Palladium 1017.29 5 1031.88 4) Option portfolio trading The following financial data for FTSE-traded companies was available on 1 February 2021. All prices are given in GBX (pence). The option price listed is for European options that can be exercised exclusively on 1 July 2021 for the stated strike price. You may assume that no dividend is payable between 1 February and 1 July 2021. Share Value Call option Put option Strike price AstraZeneca 5725 357.85 412.68 5800 Diageo 3025 173.79 240.15 3100 Unilever 4260 260.58 288.50 4300 four investment opportunities. One of them features a significant misprice that needs to be identified carry out calculations for all the four opportunities to identity the significant misprice in one of them (significant in this case means beyond rounding errors and leading to a risk-free profit via arbitrage above 2 The trader also has access to bonds at the UK market interest rate at 0.67%. 1)Currency trading on a currency market, the following currency exchange rates are listed. GBP USD EUR CHF 1GBP = 1.0000 1.2659 1.1593 1.2972 1 USD = 0.7899 1.0000 0.9158 10247 EUR = 0.8626 1.0920 1.000 1.1190 1 CHF = 0.7709 0.9759 0.8937 1.0000 2)Futures for stocks with dividend The following financial data for the supermarket sector was available on 1 February 2021. The fair strike price for futures contracts is given for delivery of shares on 1 September 2021. All prices are given in GBX (pence) Share Value Dividend payment date Futures Tesco 211.91 1.75 1 May 210.99 Sainsbury's 282.78 0.75 1 March 283.14 Morrisons 237.33 1.25 1 June 237.01 3)Futures for commodities with storage costs The following financial data for trading in a variety of commodities was available on 1 January 2021. The fair strike price for the futures contracts is given for delivery of the commodity on 1 September 2021. All prices are given in GBP (pounds) per ounce. Storage costs are given per ounce for four months of storage and should be paid in advance. Spot price Storage cost per ounce Futures Gold 1021.67 8 1042.3 Iridium 1122.48 6 1139.54 Palladium 1017.29 5 1031.88 4) Option portfolio trading The following financial data for FTSE-traded companies was available on 1 February 2021. All prices are given in GBX (pence). The option price listed is for European options that can be exercised exclusively on 1 July 2021 for the stated strike price. You may assume that no dividend is payable between 1 February and 1 July 2021. Share Value Call option Put option Strike price AstraZeneca 5725 357.85 412.68 5800 Diageo 3025 173.79 240.15 3100 Unilever 4260 260.58 288.50 4300