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Assume that the underlying asset is an investment asset with storage cost. The information of the stock price, storage cost, maturity of the forward contract,

Assume that the underlying asset is an investment asset with storage cost. The information of the stock price, storage cost, maturity of the forward contract, and riskfree rate is provided below: Based on the above information and the cost of carry model with storage cost, which of the following is closest to the correct No-Arbitrage Forward Price (F0)? (A) 129.99 (B) 156.93 (C) 184.16 (D) 75.83 Answer: _______________ Stock/Spot Price S0 $120 Maturity date of Forward Contract (2 years) T 2 Risk-free Rate r 4% Stock/Spot Price S0 $120 Storage Cost ($) U $50 Maturity date of Forward Contract (2 years) T 2 Risk-free Rate r 4%

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