Exhibit 21.5
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5% and the annualized dividend is 2%.
-Refer to Exhibit 21.5. If the futures contract was currently available for 1250, calculate the arbitrage profit.
A)$0
B)$133.41
C)-$133.41
D)$147.25
E)-$147.25

Question

Quizplus · Accepted Answer

The Answer of Exhibit 21.5
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5% and the annualized dividend is 2%.
-Refer to Exhibit 21.5. If the futures contract was currently available for 1250, calculate the arbitrage profit.
A)$0
B)$133.41
C)-$133.41
D)$147.25
E)-$147.25

Exhibit 21.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)