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What is the no arbitrage price of Security C? Look for a combination of two securities that equal the third security. Period 1 Asset Price

What is the no arbitrage price of Security C? Look for a combination of two securities that equal the third security.

Period 1

Asset Price Payoff

A 5 7

B 9 12

C ? 38

If security C was priced at 30, what trade would you put in place to make an arbitrage profit?

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