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A Riskless Stock Index Arbitrage Profit Is Possible If the Following

Question 69

Multiple Choice

A riskless stock index arbitrage profit is possible if the following condition holds:

A) F_0,T = S₀(1 + r_f - d) ^T
B) F_0,T > S₀(1 + r_f - d) ^T
C) F_0,T < S₀(1 + r_f - d) ^T
D) a and b
E) b and c

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