subject
Business, 21.02.2020 02:31 kitttimothy55

At current time t a stock paying no income has price 45, the forward price with maturity T on the stock is 40, and the price of a zero coupon bond with maturity T is 0.95. Determine whether there is an arbitrage opportunity. If there is, find an arbitrage portfolio. Verify the portfolio you construct is an arbitrage portfolio

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 13:30
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?
Answers: 2
question
Business, 22.06.2019 15:10
Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.
Answers: 3
question
Business, 23.06.2019 01:30
Why would adjusting the money supply be expected to increase economic growth during a recession? a) increasing the money supply will encourage more saving. b) increased money supply will encourage more spending and investment. co) decreased money supply will encourage more spending and investment. d) recession is caused by too much
Answers: 3
question
Business, 23.06.2019 09:00
Describe at least four ways you can take money out of a checking account
Answers: 2
You know the right answer?
At current time t a stock paying no income has price 45, the forward price with maturity T on the st...
Questions
question
Health, 07.01.2021 22:10
question
Advanced Placement (AP), 07.01.2021 22:10
question
Mathematics, 07.01.2021 22:10
question
Mathematics, 07.01.2021 22:10