Read the “Blades, Inc. Case” on page 252 in Chapter 7 of your textbook. Answer questions 1–4 at the end of the case. Your submission should include step-by-step calculations to accompany your answers for questions 1–3.
Note: You do not need to provide the calculations for question 4. Calculations are required only for questions 1–3.
Your answers for questions 1–3 should consist of one statement and step-by-step calculations, as sampled in the problems on page 233 of your textbook. Your statement should state if the arbitrage opportunity is possible. Your step-by-step calculations should include between three and five steps explained for each of the problems.
Guidelines for Submission: Your submission must be a one- to two-page Microsoft Word document with double spacing, 12-point Times New Roman font, one inch margins, and at least three sources cited in APA format. Three different hedging techniques are discussed in the final submission.