Question

8.
The BSE Sensex is now at 4085 and futures on the Sensex that mature in March 2001 (exactly 2
months from now) are trading at 4125. The risk free rate of interest is around 7% and the dividend
yield on the Sensex can be taken to be around 2% p. a. You are required to determine : How
Arbitrage profits can be made ? Show workings assuming that the Sensex at the time of maturity of
the contract will take a value of (1) 4050 and (2) 4175.​

Answer 1

Answer:

i don't know ok

Explanation:

bsnandjdnanax0