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At time 0, you bought forward Stock A with maturity 2 years. After one year (at time 1) the mark to market of your position
At time 0, you bought forward Stock A with maturity 2 years. After one year (at time 1) the mark to market of your position is 5.18. If the spot price of Stock A at time 1 is 106, what is the one-year zero-coupon, risk-free, interest rate at time 1? Answer must be: r = 4.20%
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