A riskless stock index arbitrage profit is possible if the following condition holds: A)F_0,T = S₀(1 + r_f -d)^T B)F_0,T S₀(1 + r_f - d)^T C)F_0,T

Question

A riskless stock index arbitrage profit is possible if the following condition holds: A)F_0,T = S₀(1 + r_f -d)^T B)F_0,T > S₀(1 + r_f - d)^T C)F_0,T < S₀(1 + r_f - d)^T D)a and b E)b and c

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The Answer of A riskless stock index arbitrage profit is possible if the following condition holds: A)F_0,T = S₀(1 + r_f -d)^T B)F_0,T > S₀(1 + r_f - d)^T C)F_0,T < S₀(1 + r_f - d)^T D)a and b E)b and c

A Riskless Stock Index Arbitrage Profit Is Possible If the Following