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6.Assume that a security is currently priced at $200. The risk-free rate is 5 percent. 1.a)A dealer offers you a contract in which the forward

6.Assume that a security is currently priced at $200. The risk-free rate is 5 percent.

1.a)A dealer offers you a contract in which the forward price of the security with delivery in three

2.b)Suppose the dealer were to offer you a contract in which the forward price of the security with delivery in three months is $198. How would you take advantage of the situation?

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