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Assume there exists an asset which will have a price of $ 1 0 0 in one year and this value is known with certainty.
Assume there exists an asset which will have a price of $ in one year and this value is known with certainty. If the riskfree rate of interest is what is the price of the asset today? Now assume that the $ terminal value is uncertain. To reflect the higher risk of the asset, investors command an illiquidity premium of What is the price of the asset today in this scenario?
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