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If you constrict a hedged portfolio that provides a payoff of $100 thousand in one year irrespective of the cconomic conditions in the market, what
If you constrict a hedged portfolio that provides a payoff of $100 thousand in one year irrespective of the cconomic conditions in the market, what is the discount rate that you are going to use to find the present value of the payoff? the discount rate is not needed for calculating present-value the discount rate will be the riskfree rate in the economy the discount rate that reflects risk of the portfolio the discount rate for a hedged portfolio should be zero
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