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Suppose the current price on a stock is $25, the stock has an annual dividend yield of 2.5%. The risk-free rate is 5%. If a

Suppose the current price on a stock is $25, the stock has an annual dividend yield of 2.5%. The risk-free rate is 5%. If a futures contract on this stock is available with a 3-month maturity, what should its price be? If the future price in the market is $25.50, how can you structure an arbitrage position.

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