Question: Assume that the future dividends on a given stock S are known, and denote their discounted value at the present time t by (t). Argue

Assume that the future dividends on a given stock S are known, and denote their discounted value at the present time t by (t). Argue the following:
Assume that the future dividends on a given stock S

(T-t) (T-t)

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Suppose that the first inequality does not hold that is Then we sell the stock short use that money ... View full answer

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