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1. A machine is selling for 1 million dollars now. It has a depreciation rate 10% per year. The interest rate is 8% with continuously

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1. A machine is selling for 1 million dollars now. It has a depreciation rate 10% per year. The interest rate is 8% with continuously compounding. Determine its one year forward price. 15 marks . Consider a threpusten hinomial to model for the prin of a stork naving no divi

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