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Answer all- thank you :) Question - F0,T=$45 - r=5%, continuous interest rate - =1.5% - S0=$35 - T=6 months Use| the Formula F0,T>S0e(r)T a.
Answer all- thank you :)
Question - F0,T=$45 - r=5%, continuous interest rate - =1.5% - S0=$35 - T=6 months Use| the Formula F0,T>S0e(r)T a. Is there an arbitrage opportunity? a. Why? b. How do you construct the arbitrage? c. What is the arbitrage profitStep by Step Solution
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The Wall Street Primer The Players Deals And Mechanics Of The U.S. Securities Market
Authors: Jason A. Pedersen
1st Edition
0313365164
