Determine whether an arbitrage opportunity

Assignment Help Finance Basics
Reference no: EM131572493

On July 5, a stock index futures contract was at 394.85. The index was at 392.54, the risk free rate was 2.83 percent, the dividend yield was 2.08 percent, and the contract expired on September 20. Determine whether an arbitrage opportunity was available and explain what transactions were executed.

Reference no: EM131572493

Questions Cloud

Discuss the government decreases government purchases : Suppose the government decreases government purchases, but everything else in the economy remains constant
Weighted average cost of capital : Using a numerical example, explain how the weighted average cost of capital (WACC) is computed. Why is an accurate WACC important to a firm's success?
How is the corporation structured at present : How is the corporation structured at present? Is the decision-making authority centralized around one group or decentralized to many units?
Calculate the overhead applied to production in march : Question - Calculating the Predetermined Overhead Rate, Applying Overhead to Production. Calculate the overhead applied to production in March
Determine whether an arbitrage opportunity : Determine whether an arbitrage opportunity was available and explain what transactions were executed.
Determine the annualized rate of return : Determine the annualized rate of return she earns over 180 days and compare it to the annualized rate of return on the 180-day CD.
Find an explicit formula using iteration : A person saving for retirement makes an initial deposit of $1,000 to a bank account earning interest at a rate of 3% per year compounded monthly.
Explain appropriate forecasting approach for your company : Criticize VectorCal's forecasting method. Explain the appropriate forecasting approach for your company. Provide a rationale to support your determination.
Discuss a change in supply causes a the supply curve : A change in supply causes a the supply curve. A change in quantity supplied causes the supply curve

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of growth rate and interest rate

Computation of growth rate and interest rate and What is the annual compound growth rate if the dividends

  Evaluate the implications of opec pegging the price

Evaluate the implications of OPEC pegging the price of a barrel of oil to the Euro rather than the U.S. dollar, and its potential impact on U.S. monetary policy.

  How health care financing in the united states

Describe how health care financing in the United States may promote under-access to health care services by some and overutilization.

  How do you compute standard deviation

How do you compute standard deviation? Just like in general. Lets say it gives me a list of outcomes and how frequent they happen in a give period.

  Describe accounts receivables

Describe Accounts Receivables and also needs to increase its level of inventory to support new sales and that inventory turnover is four times

  Which of the following is a different concept from the other

Which of the following is a different concept from the other three?

  Do equity shareholders appear to have gained or lost

Do equity shareholders appear to have gained or lost as a result of the recap in this revised scenario?

  What would net income and return on assets

It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?

  What amount will you have to deposit today to fund

What amount will you have to deposit today to fund this deferred annuity? Use an 8% discount rate and round your answer to the nearest.

  What is the estimate key rate duration

What is the estimate for the 30-year key rate duration for this five-year bond assuming a 1bp increase in rates across the term structure?

  Describe capital budgeting involves calculation

Describe Capital budgeting involves calculation of net present value of Avanti, Inc. is considering investing in a new telephone product.

  Essay on influence of entrepreneurship in health care

Write a 1,050-word essay on the influence of entrepreneurship in health care. Include the following in your essay:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd