Computation of arbitrage opportunity

Reference no: EM1312700

The following is the current market value of four investments and their cash flow. What is the arbitrage opportunity and how much would you make on the arbitrage?

Investment	Current Price	Cash Flows
		Year 1	Year 2	Year 3
A	$1883.24	2000	0	0
B	$ 881.66	0	1000	0
C	$1031.90	0	0	1250
D	$1401.30	400	200	1000

Reference no: EM1312700

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