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:

Diabetic Retinopathy

A diabetes complication that affects eyes, caused by damage to the blood vessels of the retina, leading to vision impairment.

Pathology

Pathology is the medical science that studies the causes and effects of diseases, especially the structural and functional changes in tissues and organs of the body caused by disease.

Organ of Corti

A structure located in the cochlea of the inner ear that contains hair cells responsible for converting sound vibrations into electrical signals for the brain to interpret as sound.

Cochlea

The snail-shaped portion of the inner ear.