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6-month forward price for a share of mu

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Reference no: EM133123130

Micron Technologies (MU) is currently trading at $81.93/share (S(0) = $81.93). A 6-month risk-free zero coupon bond with a $100 face value trades at $98.51. Assume that MU pays no dividends.

What is the fair (no-arbitrage) 6-month forward price for a share of MU?

Please describe the replicating portfolio that ensures this price.

Reference no: EM133123130

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