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Suppose you can borrow money at continuously compounded rate of 8% and invest it at 6%. A companys stock price is $100 today. Then the
Suppose you can borrow money at continuously compounded rate of 8% and invest it at 6%. A companys stock price is $100 today. Then the one-year forward price should lie between:
A. $107.68 and $109.93 B. $107.22 and $109.16 C. $106.18 and $108.33 D. $106.76 and $108.52 E. $108.00 and $110.12
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