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:

Urorectal Septum

The developmental tissue structure in embryos that divides the cloaca into two parts: the anterior urogenital sinus and the posterior anorectal canal.

Vernix Caseosa

A white creamy biofilm covering the skin of the fetus during the last trimester of pregnancy, protecting the newborn's skin.

Lanugo

Fine, soft, unpigmented fetal hair.

Colostrum

Thin, white fluid; the first milk secreted by the breast at the termination of pregnancy; contains less fat and lactose than the milk secreted later.