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March 05, 2009
Midterm 1 Answers
8. Risk-free, none of your own money. Borrow 1000 x 0.6139 = 613.90. Buy the bond. Put a 13.90 arbitrage profit in your pocket.
Posted by bparke at March 5, 2009 11:23 PM
« Midterm 1 | Main | Statistics »
8. Risk-free, none of your own money. Borrow 1000 x 0.6139 = 613.90. Buy the bond. Put a 13.90 arbitrage profit in your pocket.
Posted by bparke at March 5, 2009 11:23 PM