Determine the? no-arbitrage price of each security

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Reference no: EM131822635

The promised cash flows of three securities are listed below. If the cash flows are? risk-free, and the? risk-free interest rate is 4.0 %, determine the? no-arbitrage price of each security before the first cash flow is paid. ?(Click on the icon located on the? top-right corner of the data table below in order to copy its contents into a? spreadsheet.)

Security Sec Cash today Cash flow in one yr

A 500 500

B 0 1000

C 1,100 0

The? no-arbitrage price of security A is __ ?(Round to the nearest? cent.)

The? no-arbitrage price of security B is ___?(Round to the nearest? cent.)

The? no-arbitrage price of security C is ___ ? (Round to the nearest? cent.)

Reference no: EM131822635

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