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3. Futures contracts a) What does it mean that forward contracts are marked to market? b) Suppose the current spot price of an asset is

3. Futures contracts a) What does it mean that forward contracts are marked to market? b) Suppose the current spot price of an asset is $100, the dividend yield is 2%, the borrowing rate of an investor is 8% and the loaning rate of an investor is 3%. What is the possible range of prices for a futures contract according to arbitrage? c) What does OTC mean?

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