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1.Suppose you can borrow money at continuously compounded rate of 8% and invest it at 6%. A company's stock price is $100 today. Then the

1.Suppose you can borrow money at continuously compounded rate of 8% and invest it at 6%. A company's stock price is $100 today. Then the one-year forward price should lie between:

A.$106.18 and $108.33

B.$106.76 and $108.52

C.$107.22 and $109.16

D.$107.68 and $109.93

E.$108.00 and $110.12

1.If in the above problem the interest rates are 5% and 4%, what is the price range in which the one-year forward price should be?

A.$103.22 and $104.71

B.$103.87 and $104.93

C.$104.08 and $105.12

D.$104.72 and $105.83

E.None of the above

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