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problem: You observe that the one-year forward price of a share of stock in Kramer firm a new York tour bus company & purveyor of fine clothing in 445 000, whereas the spot value of a share is $41000. If the risk less yield on a one year zero coupon government bond is 5%, find out the forward price implied by the law of one price? Can you devise a trading strategy to create arbitrage profits? How much would you earn for every share?

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