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Suppose the current stock price is $ 1 0 . It does not pay any dividends. The continuously compound risk - free rate is 3

Suppose the current stock price is $

10 .

It does not pay any dividends. The continuously compound

risk

-

free rate is

3 % .

The

1

year forward price is $

9 .

Is there any arbitrage opportunity? How? Show all steps and explanation

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