Question
Indicate whether an arbitrageur can benefit in the following scenario. If yes, calculate the maximum possible profit: Rate of interest 6% per annum Spot price
Indicate whether an arbitrageur can benefit in the following scenario. If yes, calculate the maximum possible profit: Rate of interest 6% per annum Spot price of the underlying = Rs 780 Futures market price = Rs 795. 22 trading days remaining to expiry Consider 250 trading days in a year.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
