a. Suppose that you want to borrow a widget beginning in December of Year 0 and ending

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a. Suppose that you want to borrow a widget beginning in December of Year 0 and ending in March of Year 1. What payment will be required to make the transaction fair to both parties?
b. Suppose that you want to borrow a widget beginning in December of Year 0 and ending in September of Year 1. What payment will be required to make the transaction fair to both parties?
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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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