You're offered an opportunity to make the trades below and can short sell. $1 invested for 1y turns into $1.06. Is an arbitrage opportunity available? How do you capture it?\ a) A portfolio of four

$500.00

par zeros with maturities of 6 months, 12 months, 18 months, and 24 2. Synt

$10,000

par of a 2-year,

10%

coupon bonic, zero maturing 24 months from today.\ Synthesize a 1-year zero from the following semi-annual coupons for

$11,202

.

1. invested for 1y turns into \$1.06, make the trades below and can short sell. \$1 you capture it? a) A porte it? A portfolio of four $500.00 par zeros with maturites $10,000 par of a 2 -year, 10% coupon bond, paying seturing 24 months from today. 2. Synthesize a 1-year zero from the foll paying semi-annual coupons for $11,2. 1. invested for 1y turns into \$1.06, make the trades below and can short sell. \$1 you capture it? a) A porte it? A portfolio of four $500.00 par zeros with maturites $10,000 par of a 2 -year, 10% coupon bond, paying seturing 24 months from today. 2. Synthesize a 1-year zero from the foll paying semi-annual coupons for $11,2