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Consider a stock whose price on 1 January is 1 2 0 rupees and which will pay a dividend of I rupee on I July
Consider a stock whose price on January is rupees and which will pay a dividend of I rupee on I July and rumpees on October The interest rate is Is there an arbitrage opportunity if on I January the forward price for delivery of the stock on November is rupees? If so compute the arbitrage profit.
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