Question: Consider the following information on security A, B and C. Market Price (in $) Today Cash Flow in One Year (in $). Poor Economy Good

Consider the following information on security A, B and C. Market

Consider the following information on security A, B and C. Market Price (in $) Today Cash Flow in One Year (in $). Poor Economy Good Economy Security 840 0 200 600 ??? 840 4,200 840 Suppose that security C had a risk premium of 30%. Describe what arbitrage opportunity exists and how you would exploit it

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