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What should be the current price of security b

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Question 1: Security A's current price is $100 and it can go as high as $105 or as low as $80 in the next period. Security B, on the other hand, can go as high as $30 or as low as $20 in the next period. What should be the current price of security B so that we do not have an arbitrage opportunity if the risk-free rate over this next period is 3%

Reference no: EM132499332

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