Use the Information for the Question(s)below

question 60

Essay

Use the information for the question(s)below.
An exchange traded fund (ETF)is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM),three shares of Merck (MRK),and three shares of Citigroup Inc.(C).Suppose the current market price of each individual stock are shown below:
-Assume that the ETF is trading for $366.00,what (if any)arbitrage opportunity exists? What (if any)trades would you make?

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Definitions:

Respiratory System

The network of organs and tissues involved in the process of breathing, facilitating the exchange of oxygen and carbon dioxide between the organism and its environment.

Thoracic Cavity

An anatomical chamber of the human body that is bounded by the rib cage and diaphragm, housing the lungs and heart.

Collagen Fibers

Strong, flexible protein fibers that are a major component of connective tissue, providing structure and support to skin, bones, and tissues.