Financial instrument that behaves the same as such portfolio

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A portfolio is guaranteed to be worth exactly $5 in 1 month. What is the portfolio worth today? What name have we given to a financial instrument that behaves the same as such a portfolio?

A portfolio is guaranteed to be worth at least $5 in 1 month. What can you say about the price of the portfolio today?

In the previous part, describe an arbitrage if the portfolio is trading at $4 today. What is your guaranteed profit from the arbitrage?

Reference no: EM131459368

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