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The S&P/ASX200 Spot Contract Is at 4055 and Has a Dividend

question 28

Multiple Choice

The S&P/ASX200 spot contract is at 4055 and has a dividend yield of 8% p.a.The risk-free rate is 7% and the SPI futures price is currently trading at 4058.Which of the following statements is part of an arbitrage strategy to profit from this information?


Definitions:

Defense Mechanisms

Strategies employed by the mind to cope with uncomfortable emotions or thoughts, often unconsciously, leading to behaviors that might mitigate psychological stress.

Unacceptable Impulses

Thoughts or desires that are considered inappropriate or unacceptable by societal standards, often suppressed or repressed.

Displacement

In psychology, displacement refers to the unconscious transfer of an intense emotion from its original object to another, more acceptable one.

Defense Mechanism

Psychological strategies employed unconsciously to protect a person from anxiety-arising thoughts or feelings.

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