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7. Suppose that you buy a stock today for $90 and simultaneously enter into a forward contract to sell the stock for $100 in one

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7. Suppose that you buy a stock today for $90 and simultaneously enter into a forward contract to sell the stock for $100 in one year. By executing these two transactions you will effectively receive $100 in one year in return for your investment of $90 today. What is the effective annual rate of return on your investment

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