Make in order to earn available arbitrage profit

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If a non-dividend paying stock is trading today at $52 when the interest rate is 3%, what is the 8- month forward price? If the forward contract is available at a price of $51, what three transactions should you make in order to earn the available arbitrage profit? How much money could you make 8 months from now, and what is the present value of that profit today?

Reference no: EM131957953

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