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Also assume that T2-T1 is one year, that T1CT2 = $3 and that T1/T2 = 10%. What statement is true about the following 2 prices
Also assume that T2-T1 is one year, that T1CT2 = $3 and that T1/T2 = 10%. What statement is true about the following 2 prices FT1 = 100 & {FT2 = 133? they are not equilibrium prices since there is an arbitrage profit of 18 they are not equilibrium prices since there is an arbitrage profit of 22 they are equilibrium prices they are not equilibrium prices since there is an arbitrage profit of 20 Also assume that T2-T1 is one year, that T1CT2 = $3 and that T1/T2 = 10%. What statement is true about the following 2 prices FT1 = 100 & {FT2 = 133? they are not equilibrium prices since there is an arbitrage profit of 18 they are not equilibrium prices since there is an arbitrage profit of 22 they are equilibrium prices they are not equilibrium prices since there is an arbitrage profit of 20
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