USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 62

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The S&P 500 stock index is at 1300. The annualized interest rate is 4.0 percent, and the annualized dividend is 2 percent. You are currently considering purchasing a two-month futures contract for your portfolio.
-Refer to Exhibit 15.12. If the futures contract was currently available for 1280, indicate the appropriate strategy that would earn an arbitrage profit.

• A) long futures and short the index
• B) short futures and long the index
• C) long futures and long the index
• D) short futures and short the index
• E) None of these are correct.

---

Definitions:

Interpersonal Leaders

Individuals who guide and influence others through direct personal relationships, often characterized by their ability to effectively communicate, motivate, and resolve conflicts among team members.

Non-verbal Content

Information communicated without the use of spoken or written language, often through gestures, facial expressions, and body language.

Academic Organizations

Institutions or groups focused on education, research, or scholarly activities, often related to specific fields of study or professional practices.

Different Perspectives

Varied viewpoints or angles from which a situation, problem, or idea can be considered or evaluated.