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Now S and P 500 Cash Index = 1000 Futures (Dec. Maturity) = 1100 Risk-free Interest rate = 5 percentage/period Show Arbitrage Transaction using the

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Now S and P 500 Cash Index = 1000 Futures (Dec. Maturity) = 1100 Risk-free Interest rate = 5 percentage/period Show Arbitrage Transaction using the above information IF ANY, IF NOT write NO. Calculate Today's Cashflow and Account Balance for Mark-to-Market If you Short Futures @ dollar 100 Today (Day 0)

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