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Cu 3 (2 im): A stock is now traded for $100 on the market. Suppose the stock pays no dividend and the annually compounded interest

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Cu 3 (2 im): A stock is now traded for $100 on the market. Suppose the stock pays no dividend and the annually compounded interest rate is 7%. If the 1-year forward price is $103, is there an arbitrage opportunity? Show the steps to exploit it

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