A Riskless Stock Index Arbitrage Profit Is Possible If the Following

question 41

True/False

A riskless stock index arbitrage profit is possible if the following condition holds: F_0,T = S₀(1 + r_f - d)^T, where spot price now is S₀, value now of a futures contract expiring at time T is (F_0,T), r_f is the risk free rate, and d is the dividend.

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Definitions:

Psychoactive Constituent

A chemical compound that crosses the blood-brain barrier and acts primarily upon the central nervous system where it affects brain function, resulting in alterations in perception, mood, consciousness, cognition, or behavior.

Cannabinoid

Compounds found in cannabis or produced naturally in the body that interact with cannabinoid receptors, affecting various physiological processes.

THC

Tetrahydrocannabinol, the main psychoactive compound in cannabis that produces the feeling of being high.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).