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Answer the following questions about a non-dividend paying stock. (a) If this stock has no systematic risk, is the stocks futures price the same, greater,
Answer the following questions about a non-dividend paying stock.
(a) If this stock has no systematic risk, is the stocks futures price the same, greater, or less than its expected future spot price at the end of the futures contract? Explain your argument.
(b) If this stock has positive systematic risk, is the stocks futures price the same, greater, or less than its expected future spot price at the end of the futures contract? Explain your argument.
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