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Unformatted text preview: gives to $40 at time zero, which grows to 40 e : 06(2) = $45 : 10 by the end of 2 years. At time 2 you buy the stock at the agree appond price of $43. Then you close the short sale (return to stock you borrowed at time zero). This nexts you 45 : 10 & 43 = $2 : 10 risk free pro&t. 1...
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This note was uploaded on 04/07/2010 for the course ACTSC 231 taught by Professor Chisholm during the Winter '09 term at Waterloo.
- Winter '09