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Suppose that a trader with perfect timing ability makes one trading decision invest 100% in either the market portfolio or the risk-free asset at the

Suppose that a trader with perfect timing ability makes one trading decision invest 100% in either the market portfolio or the risk-free asset at the beginning of each period. The one-period payoff pattern that the trader would generate is equivalent to that of __________ on the market portfolio.

Select one alternative:

a. a call option

b. a futures contract

c. a put option

d. a forward contract

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