FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Scenario Suppose that there are no dividends paid by Google and the interest rate for borrowing and lending are 5% per annum respectively. Discuss b. How could you make money through arbitrage if the June and December forward contracts trade at the same price? c. How would things change if the dividends from June to December are $5? d. How would things change if the borrowing rate is 5.5% and the lending rate is 4.5%?
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