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Assume that we have an asset that pays 1$ after half a year and it's current price is 20$. If the interest rate is 5%
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Assume that we have an asset that pays 1$ after half a year and it's current price is 20$. If the interest rate is 5% and a contract expires in 1 year what is the no arbitrage profit of the buyer if the contract price is 20$?
1.02
0.95
1.1
NONE OF THE ABOVE
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