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2. There are two dates: 0 and T . Todays price of a stock is S0. The stock pays a discrete dividend of d >
2. There are two dates: 0 and T . Todays price of a stock is S0. The stock pays a discrete dividend of d > 0 at date T . The c.c. risk-free interest rate is r 0. Assume there is no arbitrage. Derive the no-arbitrage forward price of the stock with the fundamental theorem of asset pricing.
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