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Assume that the current stock price of AAA firm is trading at $49. Moreover, assume that firm AAA pays no dividends. Moreover, the annual risk-free

Assume that the current stock price of AAA firm is trading at $49. Moreover, assume that firm AAA pays no dividends. Moreover, the annual risk-free interest rate is 7% with continuous compounding. what must be the price of the 6-month maturity futures contract written on AA stock in order to avoid arbitrage in the market.

A.50

B.50.49

c.48.44

D.49.51

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