The following relates to one share of XYZ stock: The current price is 100. The

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The following relates to one share of XYZ stock:

• The current price is 100.

• The forward price for delivery in one year is 105.

• P is the expected price in one year.

Determine which of the following statements about P is TRUE.

(A) P < 100

(B) P = 100

(C) 100 < P < 105

(D) P = 105

(E) P > 105

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