Exhibit 21.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 2

Multiple Choice

Exhibit 21.5
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5% and the annualized dividend is 2%.
-Refer to Exhibit 21.5. If the futures contract was currently available for 1250, calculate the arbitrage profit.

• A)$0
• B)$133.41
• C)-$133.41
• D)$147.25
• E)-$147.25

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Definitions:

HR Department

The segment of an organization focused on recruitment, management, and direction of people who work in the organization, also dealing with employee benefits, training, and compliance.

Small Organizations

Businesses or institutions characterized by a smaller workforce, lower revenues, or limited operational scope.

Scientific Management

A management theory that analyzes work flows to improve economic efficiency, especially labor productivity.

Worker Productivity

The amount of goods and services that a worker produces in a given amount of time.