Business, 06.09.2019 02:20 bossboybaker
You enter into both arrangements from the previous problems. in addition, you take the money you earned from the short sale and deposit it into some account earning the risk-free rate (this arrangement is similar to reverse cash-and-carry). (a) what is the profit of your arrangement? (b) what is the rate of return of your arrangement (as a continuously compounded interest rate)?
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