Question
Your cousin trading actively in stocks that does not pay dividends and as part of long term investment portfolio. your cousin can buy the stock
Your cousin trading actively in stocks that does not pay dividends and as part of long term investment portfolio. your cousin can buy the stock for $1100 per share and sell it for $1099 per share. he can borrow fund at 4.5% per year and invest funds at 4% per year for what range of one year forward prices does your cousin has no arbitrage opportunities and why?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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