USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 39

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5 percent, and the annualized dividend is 2 percent.
-Refer to Exhibit 15.9. If the futures contract was currently available for 1250, 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.

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Definitions:

Group Life

Group life refers to the patterns of interaction, organization, and social dynamics that emerge within various types of groups, including families, teams, and communities.

Critical Distance

The ability to objectively analyze and evaluate a subject, allowing for a clear and unbiased perspective.

Georg Simmel

A German sociologist and philosopher known for his contributions to social theory and the analysis of modern urban life.

Research Subjects

Individuals or groups upon which scientific research is conducted in order to test hypotheses and draw conclusions.