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Question 2: (4 points) If you construct a hedged portfolio that provides a payoff of $100 thousand in one year irrespective of the economic conditions

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Question 2: (4 points) If you construct a hedged portfolio that provides a payoff of $100 thousand in one year irrespective of the economic conditions in the market, what is the discount rate that you are going to use to find the present value of the payoff? Give reasons for your selection of the discount rate. 1 C Focus

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