1. You have used APT to construct a model to determine that the theoretical values of stock X, Y and Z are all $16. Suppose that you have reliable information that next year the prices for Stocks X, Y, and Z are likely to be $12.00, $18.25, and $14.50. Determine the amount of profit that could be made using an arbitrage strategy.

   	A.	$2.25
   	B.	$10
   	C.	$129
   	D.	$169
   	E.	None of the above.