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How much profits can be per futures contract

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Assume that the risk-free interest rate is 3% p.a. (c.c.) and that the dividend yield on a stock is 2% p.a. The stock is at $1,400 and the 3-month futures price is $1,401. Is there an arbitrage opportunity? If yes, how can one take advantage of it and how much profits can be per futures contract purchased? Assume that one unit of the futures is for one unit of the stock.

Reference no: EM132386245

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