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3) Suppose that you enter into a six-month forward contract on a non-dividend paying stock when the stock price is $30 and the risk-free interest
3) Suppose that you enter into a six-month forward contract on a non-dividend paying stock when the stock price is $30 and the risk-free interest rate (with quarterly compounding) is 12% per annum. a) What is equivalent continuously compounding rate? b) What is the forward price? when underlying asset is Foward contract does not pag ang divide (like this prob use this
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