ChatterBank1 min ago
Reverse Cash And Carry Arbitrage
The price of the Suzlon share at national stock exchange is ruling at rs 85, while a three month futures contract on Suzlon is being traded at rs 86. If one can borrow at 12% and Suzlon is not paying any divided in the next three months is there any arbitrage opportunity available in the prices ruling in the stock market. If so how can the profit be made? Assume size of the future contract as 1000 shares.
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