USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 70

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, calculate the arbitrage profit.

• A) $0
• B) $133.41
• C) -$133.41
• D) $147.25
• E) -$147.25

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Definitions:

Phloem

The vascular tissue in plants responsible for the transport of sugars and nutrients throughout the plant.

Water Potential

The potential energy of water per unit volume relative to pure water, which determines the direction water will flow.

Tension-Cohesion Model

A theory explaining how water moves through plants, relying on water's cohesive properties and the tension created by transpiration.

Tension-Cohesion Model

A theory explaining the movement of water through the xylem of plants, based on water molecule cohesion and tension created by evaporation.