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					       A            B            C          D        E        F           G            H
 1 Arbitrage
 2                           Bond
 3                           6 and 7/8 5 and 1/2 7 and 3/4
 4                                    1         2         3
 5           Price             101.625 101.5625      103.8
 6               8/15/2000    103.4375       2.75    3.875        can make infinite profit
 7               2/15/2001                102.75 103.875
 8                           6 and 7/8 5 and 1/2 7 and 3/4
 9           Bought            0.10689 10.10949           0
10           Sold                     0         0        10
11
12           8/15/00 cash     0.107532 >=                0
13           2/15/01 cash     9.75E-05 >=                0
14           Profit           0.392226
        A           B             C              D            E         F          G         H
 1 No Arbitrage
 2                         Bond
 3                         6 and 7/8        5 and 1/2   7 and 3/4
 4
 5                                      1              2            3
 6 Buy       Ask Price           101.6563      101.5938     103.7813
 7 Sell      Bid Price           101.5938      101.5313     103.7188
 8               8/15/2000       103.4375           2.75        3.875       No way to make any
 9               2/15/2001                        102.75     103.875        money!!
10                         6 and 7/8        5 and 1/2    7 and 3/4
11           Bought                     0              0 1.6156E-27
12           Sold             3.72901E-29              0            0
13
14           8/15/00 cash     2.40321E-27   >=                      0
15           2/15/01 cash     1.67819E-25   >=                      0
16           Profit          -1.63879E-25

				
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posted:9/5/2012
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