20. The current level of a stock index is 450. The dividend yield on the index is 4% (in continuously compounded terms), and the risk-free rate of interest is 8% for six-month investments. A six-month futures contract on the index is trading for 465. Identify the arbitrage opportunities in this setting, and explain how you would exploit them
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.