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You are even the following spot rates! Ispot rates 1 year 40 2 year 4.3 3 year 5.1 Calculate the 1-year forward rate rate 2

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You are even the following spot rates! Ispot rates 1 year 40 2 year 4.3 3 year 5.1 Calculate the 1-year forward rate rate 2 years from now 06.11 5.50 OR 6.7 D Question 29 6 pts Use the following information to answer the next TWO questions Catherine Anderson CFA uses a protective put strategy. She buys the share with a current price of $30 and she buys a put with an exercise price, X-$27 and put premium, P - $5. Which of the following is TRUE about his strategy? The pot provides downside protection from the stock price declines: IL The cost of the put premium reduces the profit on the trade. Only DI only ON Question 30 6 pts For the previous question what is the max loss of his strategy 07 O. 10

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