Suppose XYZ stock has a price of $50 and pays no dividends. The effective annual interest rate

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Suppose XYZ stock has a price of $50 and pays no dividends. The effective annual interest rate is 10%. Draw payoff and profit diagrams for a long position in the stock. Verify that profit is 0 at a price in 1 year of $55.
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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