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6. The S&R index spot price is 1 100, the continuously annual risk-free rate is 5%, and the continuous dividend yield on the index is

6. The S&R index spot price is 1 100, the continuously annual risk-free rate is 5%, and the continuous dividend yield on the index is 2% a. Suppose you observe a 6-month forward price of 1120. What arbitrage would you undertake? b. Suppose you observe a 6-month forward price of0. What arbitrage would you undertake

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