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Assume that the current stock price of AAA firm is trading at $12. Moreover, assume that firm AAA pays no dividends and that the annual

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Assume that the current stock price of AAA firm is trading at $12. Moreover, assume that firm AAA pays no dividends and that the annual risk-free interest rate is 10% p.a. with continuous compounding. What must be the price of the 9-month maturity futures contract written on AAA stock in order to avoid arbitrage in the market? O a. $12.93 o b. $11.13 o c. $13.26 O d. d. $13.05

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