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stock 123 is currently trading at $150.One year future contract price on 123 is $152. 123 is to pay $3 dividend per share in one
stock 123 is currently trading at $150.One year future contract price on 123 is $152. 123 is to pay $3 dividend per share in one year and the annually compouned riskfree rate is 4% p.a. To expolit arbitrage whixh od the following?
a. short sell 123, borrow money and buy futures
b. buy 123, lend money, and buy futures
c. short sell 123, lend money and buy futures
d. buy 123, borrow money and sell futures
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