Question: Consider the information in the table below relating to securities that pay risk-free cash flows over the next two years: Security Cash Flow Cash Flow
Consider the information in the table below relating to securities that pay risk-free cash flows over the next two years: Security Cash Flow Cash Flow Price Today In One Year In Two Years ($) ($) ($) A 188 200 0 B 170 o 200 What is the no-arbitrage price of Security C, that pays $100 in one year and $100 in two years. A) $ 151 B) $ 29,031 OC) $ 17,275 D) $ 167 E) $ 179
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