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An investor observes a 1-year forward price of 115 on a non-dividend paying stock. The spot price of the stock is 110. The continuously compounded

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An investor observes a 1-year forward price of 115 on a non-dividend paying stock. The spot price of the stock is 110. The continuously compounded risk-free interest rate is 5%. (a) Find the no-arbitrage forward price. (b) Explain how the investor can arbitrage

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