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Suppose that a trader with perfect timing ability makes one trading decision - invest 100% either the market portfolio or the risk-free asset - at
Suppose that a trader with perfect timing ability makes one trading decision - invest 100% 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
a) a forward contract
b) a futures contract
c) a call option
d) a put option
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