Suppose XYZ stock pays no dividends and has a current price of $50. The forward price for

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Suppose XYZ stock pays no dividends and has a current price of $50. The forward price for delivery in one year is $53. If there is no advantage to buying either the stock or the forward contract, what is the 1-year effective interest rate?
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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