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The current price of a non-dividend paying stock is 20. The price of the 3-year forward contract written on the stock is 23. Suppose the

The current price of a non-dividend paying stock is 20. The price of the 3-year forward contract written on the stock is 23. Suppose the continuously compounded risk-free rate is 5% per year. Is the forward fairly priced? If not, construct a portfolio that exploits an arbitrage opportunity

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