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Page 6 of 8 No ARB Forward price-with cashflows on the underlying Consider an asset priced at $ 100. A forward contract on the asset

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Page 6 of 8 No ARB Forward price-with cashflows on the underlying Consider an asset priced at $ 100. A forward contract on the asset expires in nine months. The risk free rate is 4 percent. The present value of the expected cashflows on the underlying before contract expiration is s0.94. What is the NeARB forward price? 15

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