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Suppose that a security costs $3,000 today and pays off some amount b in one year . Further, suppose that b is uncertain according to
Suppose that a security costs $3,000 today and pays off some amount b in one year . Further, suppose that b is uncertain according to the following table of probabilities : Probability 13,000 0. 1 13,300 0. 2 13,600 0. 3 13,900 0. 7 14,200 0. 2
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