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:

Geographic

Pertaining to the physical features, location, or characteristics of the earth or its environments.

End-use

The final application or consumption for which a product, material, or service is intended after its manufacture or production.

Co-branded Product

A product or service offered by two or more companies under a shared branding strategy, aiming to leverage each other's brand strengths.

Comarketed Product

A product that is promoted and sold by more than one company, often as a result of a partnership or agreement between the companies.