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oldfinger inc. is a company exploiting a gold mine. Its share is currently traded at \\( \\$ 900 \\). uppose that the yield curve for risk-free rates currently is flat at \mathrmrmathrmf=1 per year. a) What is the no-arbitrage 6-month forward price \\( F_{6 M} \\) for one share of Goldfinger? (5 marks) b) Today you enter a short position in a 6-month forward contract on 500 shares of Goldfinger at the forward price calculated in part a): i. How much do you pay today to enter the short position? ii. Is this trade an arbitrage strategy? Justify your answer in no more than 3 lines. (5 marks) c) Suppose you are certain that next year, i.e., at \\( \\mathrm{t}=1 \\) Year, Goldfinger will pay a dividend of \\( \\$ 90 \\) per share. Today, you observe in the market an 18-month forward price of \\( F_{18 M}=\\$ 800 \\). Identify an arbitrage strategy specifying all the transactions that your strategy will involve. (5 marks) d) Suppose that the CAPM holds, the beta of Goldfinger stock is -0.2. Goldfinger has issued some bonds that are subject to default risk. In case of a recession in the economy, does Goldfinger bonds' default risk increase or decrease? Briefly explain why in no more than 5 lines. (5 marks) e) Suppose the bond issued by Goldfinger is a callable bond that allows Goldfinger to redeem the bond and drop future interest payments by paying its principal early. If the likelihood of large interest rates changes in the future becomes higher, does the price of this bond today increase or decrease? Briefly explain why in no more than 5 lines

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