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The following table shows prices of three shares that would prevail under three economic scenarios. stock A B C RecessionA=12,B=8,C=9 Normal A=7,B=13,C=9 BOOM A=15,B=5,C=9 If
The following table shows prices of three shares that would prevail under three economic scenarios.
stock A B C
RecessionA=12,B=8,C=9
Normal A=7,B=13,C=9
BOOM A=15,B=5,C=9
If all of these stocks cost $8 today. Perform necessary calculations to check if there are any arbitrage opportunities.
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