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5. A stock provides a dividend yield of 5.0% paid semiannually (equivalent to 4.94% continuously compounded). The spot price of the stock is currently $500,

5. A stock provides a dividend yield of 5.0% paid semiannually (equivalent to 4.94% continuously compounded). The spot price of the stock is currently $500, and the riskfree rate is 7.5% with continuous compounding. a. What is the twoyear forward price for a stock? b. What is the continuously compounded cost of carry for the stock

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