How much profit you expect to make from arbitrage position

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Reference no: EM131247268

Suppose you observe the following yields on T-bills and T-bill futures contracts on January 5, 1991:

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a) What arbitrage position should you undertake in order to make a certain profit with no risk and no net investment?

b) How much profit do you expect to make from your arbitrage position?

Reference no: EM131247268

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