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1. - A stock has current price So 46. The annual continuous interest rate is r = 0.035 and the continuous dividend yield is 8

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1. - A stock has current price So 46. The annual continuous interest rate is r = 0.035 and the continuous dividend yield is 8 0.01. You observe a one year prepaid forward price of 45.60. Is there an arbitrage opportunity? (On your own words, justify your answer). If there is, state the strategy to create an arbitrage

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