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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%

  1. 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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