3. A $50 stock pays an 8% continuous dividend. The continuously compounded riskfree rate is 6%. a....

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3. A $50 stock pays an 8% continuous dividend. The continuously compounded riskfree rate is 6%.

a. What is the price of a prepaid forward contract that expires 1 year from today?

b. What is the price of a forward contract that expires at the same time?

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