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The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The annual rate of interest

The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The annual rate of interest on treasuries is 4.8% (0.4% per month). What annualized rate of interest makes the net payoff zero? (Assume monthly compounding) A. 11.2% B. 13.2% C. 8.5% D. 4.8%

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