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The unique delivery price F at which arbitrage is not possible may be determined from knowledge of the current spot price, the level of interest
The unique delivery price F at which arbitrage is not possible may be determined from knowledge of the current spot price, the level of interest rates, and: the present value of the cost of holding the spot asset to date T the corporate tax rate at date T the future value of the cost of holding the spot asset to date T the present value of the discount rate Question 24 2.5pts $10 invested for five months at 13% compounded continuously will grow to: Question 25 2.5pts What is the present value of $83 to be received in seven months if the interest rate is 11% compounded continuously? $0.14 $88.50 $77.84 $38.43
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