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You observe the following market data for a futures contract on a non dividend-paying stock. The risk free interest rate is 4.5% p.a., the futures
You observe the following market data for a futures contract on a non dividend-paying stock. The risk free interest rate is 4.5% p.a., the futures price is $132.20 and the stock price is $128.55. The futures contract will deliver in 6 months. Suggest an arbitrage strategy (provide only the t=0 transactions), if you think arbitrage is possible OR explain why arbitrage is not possible.
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