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:

Full-duplex Transmission

A mode of communication that allows data to be transmitted simultaneously in both directions on a signal carrier, enabling two-way communication at the same time.

Both Directions

A term typically used in communications and data transfer indicating that transmission can occur to and from two endpoints or devices.

Data Rate

The speed at which data is transmitted, usually measured in bits per second (bps).