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Q1) Suppose that the risk-free interest rate is 10% per annum with continuous compounding and the yield on a stock AA is 4% per annum.

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Q1) Suppose that the risk-free interest rate is 10% per annum with continuous compounding and the yield on a stock AA is 4% per annum. The stock AA is standing at 400$ and the futures prices for a contract deliverable in four months is 405$. What arbitrage opportunity does this create and what should arbitrage strategy be

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