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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 $100 in one year and this value is known with certainty. If the risk-free rate of interest is 6%, what is the price of the asset today? Now assume that the $100 terminal value is uncertain. To reflect the higher risk of the asset, investors command an illiquidity premium of 3%. What is the price of the asset today in this scenario?

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