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Consider two securities that pay? risk-free cash flows over the next two years and that have the current market prices shown? here:
Suppose a security with cash flows of $ 100 in one year and $200 in two years is trading for a price of $260.
What arbitrage opportunity is? available? ?(Select the best choice? below.)
|Security||Price Today||Cash Flow in One Year||Cash Flow in Two Years|
Group of answer choices
Sell two shares of the security and buy one share of B1 and two shares of B2.
Sell two shares of the security and buy one share each of B1 and B2.
Buy two shares of the security and sell one share each of B1 and B2
Buy two shares of the security and sell one share of B1 and two shares of B2.