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12. The spot price of an investment asset is $40 and the risk-free rate for all maturities is 8% with continuous compounding. The asset provides
12. The spot price of an investment asset is $40 and the risk-free rate for all maturities is 8% with continuous compounding. The asset provides an income of $2 at the end of the first year and at the end of the second year. What is the three-year forward price?
A) $46.32 B) $41.23 C) $43.55 D) $47.31
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