Business
Business, 21.02.2020 02:31, kitttimothy55

At current time t a stock paying no income has price 45, the forward price with maturity T on the stock is 40, and the price of a zero coupon bond with maturity T is 0.95. Determine whether there is an arbitrage opportunity. If there is, find an arbitrage portfolio. Verify the portfolio you construct is an arbitrage portfolio

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At current time t a stock paying no income has price 45, the forward price with maturity T on the st...

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