INVESTMENTS-CONNECT PLUS ACCESS
INVESTMENTS-CONNECT PLUS ACCESS
11th Edition
ISBN: 2810022611546
Author: Bodie
Publisher: MCG
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Chapter 21, Problem 12PS

a

Summary Introduction

To find:

the cash flow of the strategy now and after a year.

b

Summary Introduction

To Show:

The equilibrium price will be F0= S0(1 + r) − D to avoid arbitrage.

c

Summary Introduction

To Show:

The equilibrium price will be F0= S0(1 + r − d) if d = D/S0.

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