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A Stock That Pays No Dividends Has a Price of $50.The

Question 9

Multiple Choice

A stock that pays no dividends has a price of $50.The one-month maturity,at-the-money European call and put are trading at $10 and $9.90,respectively.The one-month forward price of the stock is:


A) 49.90
B) 50.00
C) 50.10
D) 50.20

Correct Answer:

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