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Stock Y is currently priced at 2 5 per share and it pays dividends continuously at a rate propertional to its price at a constant
Stock is currently priced at per share and it pays dividends
continuously at a rate propertional to its price at a constant rate of
You purclase shares of stock and invest all dividends by purclasing
extra shares of stock Y After months, you close out all positions
when the stock price is
If the month profit is when the continuously compourded
riskfree interest rate is find
Hint: prefit value at time FV of cost at time
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