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(10 points) HAW, Inc. plans to pay a $1.30 dividend per share in 3 months, a $1.05 dividend in 6 months, $1.60 dividend in 9
(10 points) HAW, Inc. plans to pay a $1.30 dividend per share in 3 months, a $1.05 dividend in 6 months, $1.60 dividend in 9 months, and $1.45 dividend in end of the 1 year. HAW's share price today is $47.50 and the continuously compounded interest rate is 6%. a. What is the price of a forward contract, which expires immediately after the fourth dividend? b. What is the price of a prepaid forward contract, which expires immediately after the fourth dividend
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