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Taxmantoo

06/08/07 6:58 AM

#550601 RE: zztops #550600

What's three months' interest on $13,300?
About $112 after you subtract dividends on the Dow stocks?
Anybody can buy the Dow stocks, sell a YM, and collect a guaranteed return of 112 points plus any dividends they receive on the stocks.
Alternately, they can buy the futures and sell the stocks. These arbitrage opportunities keep the futures price tied to market price and interest rates.