Exhibit 21.10 Use the Information Below for the Following Problem(S)

question 56

Multiple Choice

Exhibit 21.10
Use the Information Below for the Following Problem(S)
The S&P 500 stock index is at 1300. The annualized interest rate is 4.0% and the annualized dividend is 2%. You are currently considering purchasing a 2-month futures contract for your portfolio.
-Refer to Exhibit 21.10.If the futures contract was currently available for 1350,calculate the arbitrage profit.

• A) $8.33
• B) $28.45
• C) $45.67
• D) $50.00
• E) $54.33

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Definitions:

Hypothalamus

A region of the brain responsible for producing hormones that control various bodily functions, including temperature regulation, hunger, moods, and the release of hormones from the pituitary gland.

Appetite

The innate craving to fulfill a physical necessity, particularly the need for nourishment.

Binge Eating Disorder

A serious eating disorder marked by recurrent episodes of eating large quantities of food (often very quickly and to the point of discomfort), a feeling of a loss of control during the binge, experiencing shame, distress or guilt afterwards, and not regularly using unhealthy compensatory measures (e.g., purging) to counter the binge eating.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by inappropriate compensatory behaviors such as vomiting, fasting, or excessive exercise.