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[10 points] The promised cash flows of three securities are listed here. If the cash flows are risk-free, and the risk-free interest rate is 5%,

[10 points] The promised cash flows of three securities are listed here. If the cash flows are risk-free, and the risk-free interest rate is 5%, determine the no-arbitrage price of each security before the first cash flow is paid.

Security

Cash Flow Today ($)

Cash Flow in One Year ($)

A

500

500

B

0

1000
C 1000

0

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