A) You have been provided with the information below on a British American Tobacco plc...
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A) You have been provided with the information below on a British American Tobacco plc futures contract. You have been provided with the current share price, risk-free rate, futures price and maturity. Using futures parity, how can you take advantage (via arbitrage) of the mispricing. (15 Marks)
Share Price - R145.64
Risk Free Rate - 5.95%
Maturity - 4 months
Futures Price - R151.9
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