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Problem 2 (4 points): Assume Asset A costs $40 today, and that the risk-free, continuously compounded interest rate is 6%. What is the arbitrage opportunity

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Problem 2 (4 points): Assume Asset A costs $40 today, and that the risk-free, continuously compounded interest rate is 6%. What is the arbitrage opportunity for a 1-year forward contract for the below two scenarios? Show your work 1. 1Y Forward Price = $45 today 2. 1Y Forward Price = $35 today =

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