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Stock in ABC Corp is trading at $20. The futures contract with delivery in 12 months has future price $21. If additionally the interest rate

Stock in ABC Corp is trading at $20. The futures contract with delivery in 12 months has future price $21. If additionally the interest rate is given below, check if there is an arbitrage opportunity and if so, suggest how it can be exploited. a. The market interest rate is 5%. b. The market interest rate is 8%. c. The market interest rate is 3%.

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