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Question 21 (4 points) Suppose you observe 9-month Forward price of 1280. What arbitrage would you undertake and what is the resulting arbitrage profit? You

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Question 21 (4 points) Suppose you observe 9-month Forward price of 1280. What arbitrage would you undertake and what is the resulting arbitrage profit? You will engage in a cash-and-carry arbitrage and the resulting arbitrage profit is $18.47 You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $18.147 You will engage in a cash-and-carry arbitrage, and the resulting arbitrage profit is 561.86 You will engage in a reverse cash and carry arbitrage, and the resulting arbitrage profit is $61.86 You will engage in a cash-and-camv arbitrage, and the resulting arbitrage profit is $34.15 You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $34.15. You will engage in a cash-and-carry arbitrage and the resulting arbitrage profit is $55.76. You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $55.76. Question 21 (4 points) Suppose you observe 9-month Forward price of 1280. What arbitrage would you undertake and what is the resulting arbitrage profit? You will engage in a cash-and-carry arbitrage and the resulting arbitrage profit is $18.47 You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $18.147 You will engage in a cash-and-carry arbitrage, and the resulting arbitrage profit is 561.86 You will engage in a reverse cash and carry arbitrage, and the resulting arbitrage profit is $61.86 You will engage in a cash-and-camv arbitrage, and the resulting arbitrage profit is $34.15 You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $34.15. You will engage in a cash-and-carry arbitrage and the resulting arbitrage profit is $55.76. You will engage in a reverse cash-and-carry arbitrage, and the resulting arbitrage profit is $55.76

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