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Suppose that the risk-free interest rate is 10% per annum with continuous compounding. The stock price is 40, the dividend yield is 4% and a)

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Suppose that the risk-free interest rate is 10% per annum with continuous compounding. The stock price is 40, the dividend yield is 4% and a) the futures price for a contract deliverable in four months is 39. What arbitrage opportunities does this create? b) the futures price for a contract deliverable in four months is 42. What arbitrage opportunities does this create

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