Supposed
I had 3200 shares of ITC in my portfolio holding for long term and bullish on it
On 11 feb spot price/closing price is 226.45
And future price of 25 feb is 224.4
Sell spot at 226.45
and
Buy future at 224.4
Which means
Cash inflow
Selling share 3200*226.45 = ₹724640
Cash outflow
Buying 25 feb future around ₹2 lacs
And Net inflow is 5lacs
And there is arbitrage profit of ₹2 per share
15 day return 2/226 0.88%
1 month return 1.7%
Annual Arbitrage return around 21%
Plus net inflow of ₹5 lacs
I had 3200 shares of ITC in my portfolio holding for long term and bullish on it
On 11 feb spot price/closing price is 226.45
And future price of 25 feb is 224.4
Sell spot at 226.45
and
Buy future at 224.4
Which means
Cash inflow
Selling share 3200*226.45 = ₹724640
Cash outflow
Buying 25 feb future around ₹2 lacs
And Net inflow is 5lacs
And there is arbitrage profit of ₹2 per share
15 day return 2/226 0.88%
1 month return 1.7%
Annual Arbitrage return around 21%
Plus net inflow of ₹5 lacs
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.