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One share Microsoft Corp is currently trading at $ 1 0 0 . You believe that the price of the stock, which does not pay
One share Microsoft Corp is currently trading at $ You believe that the price of the stock, which does not pay dividends, will increase over the next year. The continuously compounded riskfree rate is Calculate your profit in one year by shorting selling one share of Microsoft Corp. Assume the price goes up to $ in one year.
Hint: You will hold a long position of the stock.
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