3.22. Show that equation (3.7) is true by considering an investment in the asset combined with a...

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3.22. Show that equation (3.7) is true by considering an investment in the asset combined with a short position in a futures contract. Assume that all income from the asset is reinvested in the asset. Use an argument similar to that in footnotes 2 and 3 and explain in detail what an arbitrageur would do if equation (3.7) did not hold.

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