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1) A certain stock is trading at $75. You are considering buying a 2- year forward. How much would you have to agree to pay

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1) A certain stock is trading at $75. You are considering buying a 2- year forward. How much would you have to agree to pay in 2 years in each of the following cases: a) The stock pays a $1.5 dividend every 6 months and it has just paid a dividend. So, it will pay a dividend in 6 months anote in a year, another in a year and a half and another dividend right before the forward contract expires. b) The stock pays a 3% continuous dividend yield. In both cases assume that the interest rate is 2% for every tenor

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