What are the arbitrage profits per share of hp tech

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Reference no: EM132828452

Your old friend, Johnso Moore, is a forwards and futures trader at a big bank. You look up his quotes for HP Tech. HP Tech is trading at $472.91, the monthly risk-free rate is 0.25% per month, and Moore is quoting a forward price of $480.08 for a 6 month forward contract. HP Tech is not expected to pay a dividend in the next 6 months.

-Is there an arbitrage opportunity?

-What steps should you take to realize the arbitrage profits?

-What are the arbitrage profits per share of HP Tech that could be realized today?

Reference no: EM132828452

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