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Determine the? no-arbitrage price

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The promised cash flows of three securities are listed below. If the cash flows are? risk-free, and the? risk-free interest rate is 3.0%?, determine the? no-arbitrage price of each security before the first cash flow is paid.

?(Click on the following icon in order to copy its contents into a? spreadsheet.)

Security

Cash Flow Today? ($)

Cash Flow in One Year? ($)

A

600

600

B

0

1,200

C

1,200

0

The? no-arbitrage price of security A is ?$ -----------------------------enter your response here. ?(Round to the nearest? cent.)

Reference no: EM133062767

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