Consider the following group with the following teams. The contracts are given in the format of . The price of means that if the team wins, you will get paid . If the team loses, you will get paid .
The group works as follows: 2 teams are guaranteed to make it out. Find the arbitrage. You are allowed to long or short contracts. You are also allowed to long or short bonds, which pay at expiry. Assume interest rates are , so .
Give the answer in the form of the initial credit you will receive in the arbitrage.