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7. Consider a perfect market in which two ZCBs with maturity 1 or v{t,s), year are traded, with notionals 200 euros and 100 euros resper-
7. Consider a perfect market in which two ZCBs with maturity 1 or v{t,s), year are traded, with notionals 200 euros and 100 euros resper- tively. If the price of the former is 194 euros, what should be the price of the latter, for the market to be arbitrage-free? A 97 euros. BO Any price greater than 97 euros. Ca Any price smaller than 97 euros. DO 100 euros
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
