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1. Investor considers entering a 2Y forward contract (SHORT) for a delivery of 10 shares of company ABC. Current price of one share is 100

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1. Investor considers entering a 2Y forward contract (SHORT) for a delivery of 10 shares of company ABC. Current price of one share is 100 EUR. At the end of each year company ABC pays its shareholders 5 EUR of dividend per share. What would be the total result of investor from forward contract/s, if at time of delivery the market price of ABC's shares is 103 EUR per share and he/she entered a contract at theoretical price. Please assume the following countinous compounding 1Y and 2Y zero rates: 8% pa. and 10% pa. respectively

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