Consider a portfolio of two securities: one share of Johnson and Johnson (JNJ) stock and a bond that pays $100 in one year. Suppose this portfolio is currently trading with a bid price of

$141.58 and an ask price of $142.13, and the bond is trading with a bid price of $91.78 and an ask price of $91.99. In this case, what is the no-arbitrage price range for JNJ stock?

AppendixLO1