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A Riskless Stock Index Arbitrage Profit Is Possible If the Following

Question 30

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A riskless stock index arbitrage profit is possible if the following condition holds: F₀,T = S₀(1 + rf - d)ᵀ,where spot price now is S₀,value now of a futures contract expiring at time T is (F₀,T),rf is the risk free rate and d is the dividend.

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