Assume that a two-month forward contract (100 shares per contract; cash settlement at maturity) is written on a stock that has announced to pay only $2 cash dividend per share at the end of the first month and pay nothing else before the forward contract expires.Assume that:* The stock can be traded at $100 per share right now (buy or sell).* Riskfree rate (for loan or deposit) is quoted as APR=12%, compounded monthly;* Assume there is 10% initial margin requirement for forward contract (long or short) and 50% initial margin for short sales;* There is no daily settlement or maintenance margin level required for either forward or short sales;* You are not allowed to deposit the proceeds you receive from short sales (no interest on those short sale proceeds). All the loan can be obtained without any initial margin or collateral at the risk free rate quoted above.(a) Assume now that the forward contract now can be traded at $150 per share (long or short). How do you form an arbitrage strategy to take advantage of this?(Need to show the components of your arbitrage portfolio and arbitrage cashflows to justify that your arbitrage strategy works!)(b) Assume that the forward contract now can be traded at $50 per share (long or short). How do you form an arbitrage strategy to take advantage of this?(Need to show the components of your arbitrage portfolio and arbitrage cashflows to justify that your arbitrage strategy works!)
🇦🇺 Writing for Australian Universities
- AGLC4 (law), APA 7th, Harvard (Business), Vancouver (Health Sciences)
- Grading: HD (85-100%), D (75-84%), C (65-74%), P (50-64%)
- UniMelb, UNSW, ANU, Monash, UQ, UWA standards covered
- Australia uses British English spelling conventions
- Turnitin is widely used — all work is checked before delivery
Australia Pricing Guide
How It Works — 3 Simple Steps
Fill In Your Order Form
Provide your topic, academic level, deadline, referencing style, and any specific instructions or rubric criteria.
Get Matched with a Writer
We assign the best-qualified expert in your subject, familiar with Australia university requirements.
Receive & Review
Download your plagiarism-free paper, review it, and request any free revisions within 14 days if needed.
Frequently Asked Questions
Is this service plagiarism-free?
Yes. Every paper is written from scratch by a human expert to your specific instructions. We run all papers through professional plagiarism detection software and can include a Turnitin-equivalent report on request.
Do your writers know Australia academic standards?
Yes. Our writers are familiar with Australia's university systems, citation styles, and marking conventions. You'll get a paper that meets your institution's exact expectations.
What citation styles do you support for Australia?
We support all major citation styles required by Australia universities, including APA 7th, Harvard, Chicago/Turabian, MLA, OSCOLA, Vancouver, and IEEE.
Can you write just one chapter of my dissertation?
Yes. We write individual dissertation chapters — literature reviews, methodology, data analysis, introductions, conclusions — or the full manuscript from proposal to defence-ready submission.