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Arbitrage opportunities in abc stock

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Reference no: EM132507069

Given the following information, could you find any arbitrage opportunities in ABC stock? If so, what is your arbitrage procedure and profits? (Assume all the interest rates are periodically compounded.)

Bid Ask

6-month ABC futures: $398.10 $399.50

ABC stock price: $392.65 $393.35

3-month T-bill rate: 4.00% 5.00%

6-month T-bill rate: 5.00% 5.00%

Reference no: EM132507069

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