The current spot price of pricelines stock is 1578 and pays


Question: The current spot price of Priceline's stock is $1,578 and pays no dividends for the next 6 months. The current 6-month future price on Priceline is $1,617.50. The current 6- month risk-free rate is 5% with continuous compounding. If there is a $20 transaction fee for the combination of all transactions made, can you make an arbitrage profit? If there is an arbitrage how much would you make using 50 shares of Priceline? Otherwise prove an arbitrage is not possible.

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Finance Basics: The current spot price of pricelines stock is 1578 and pays
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