Cash Flows can be thought of as a contract in which one party will receive cash payments from the other party on certain future dates. A good example of Cash Flows is the dividends associated with a stock that we mentioned in Section 5.3. To check whether arbitrage opportunities exist, it is better to look at returns rather than security prices.
Cash Flows can be thought of as a contract in which one party will receive cash payments from the other party on certain future dates. A good example of Cash Flows is the dividends associate…