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Arthur Inc. currently trades for $70 per share and will pay off $150 two years from today if the economy is strong or $80 two
Arthur Inc. currently trades for $70 per share and will pay off $150 two years from today if the economy is strong or $80 two years from today if the economy is weak. The market index fund currently trades for $75 per share and will pay off $160 two years from today if the economy is strong or $90 two years from today if the economy is weak. The risk-free interest rate equals 3%.
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