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Consider a forward contract on an asset paying no income with price (St) 120 (e.g., stock without dividends) with maturity T. Let Z(t,T) be the

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Consider a forward contract on an asset paying no income with price (St) 120 (e.g., stock without dividends) with maturity T. Let Z(t,T) be the value at time t of a ZCB maturing at time T. Let F(t, T) denote the forward price. It holds that F(t, T)= SZ(t, T)-1 (1) Show (1) using replication argument. (ii) Show (1) using no-arbitrage argument

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