Cash market and two month pqr futures trade

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Reference no: EM131106942

Suppose the Company PQR trades at 1000 in the cash market and two month PQR futures trade at 1030. If transactions costs involved are 0.4%.

What is the arbitrage return possible?
1. 1.8% per month 3. 2% per month
2. 1.3% per month 4. 1.1% per month

Reference no: EM131106942

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