Question: Suppose that a trader with perfect timing ability makes one trading decision - invest 100% either the market portfolio or the risk-free asset - at

Suppose that a trader with perfect timing ability makes one trading decision - invest 100% either the market portfolio or the risk-free asset - at the beginning of each period. The one period payoff pattern that the trader would generate is equivalent to that of ______ on the market portfolio

a) a forward contract

b) a futures contract

c) a call option

d) a put option

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