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Short Answer (6 points each) Show your work for full credit. Question 1. Consider a stock that pays a dividend D at the end of

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Short Answer (6 points each) Show your work for full credit. Question 1. Consider a stock that pays a dividend D at the end of the year, and one year futures contracts on the stock with futures price Fo. Recall the equation from Spot-Futures parity: Fo+D (1+r) = So

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