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*Question Completion Status: Assume +Ft2 = +F11 (1+111T2) + T1CT2 is the equilibrium situation. Also assume that T2 - T1 is one year, that T1CT2

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*Question Completion Status: Assume +Ft2 = +F11 (1+111T2) + T1CT2 is the equilibrium situation. Also assume that T2 - T1 is one year, that T1CT2 = $3 and that 11/12 - 10%. What statement is true about the following 2 prices FT1 = 100 & +Ft2 = 133? they are not equilibrium prices since there is an arbitrage profit of 20 they are not equilibrium prices since there is an arbitrage profit of 18 ME they are not equilibrium prices since there is an arbitrage profit of 20 they are not equilibrium prices since there is an arbitrage profit of 18 they are equilibrium prices they are not equilibrium prices since there is an arbitrage profit of 22 Moving to another question will save this response

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