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= = 6. The spot price of a stock is So = $120 and it is known that pays a quarterly dividend of D =

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= = 6. The spot price of a stock is So = $120 and it is known that pays a quarterly dividend of D = $0.60, the first and second payments are due in three and six months, respectively. What is the no- arbitrage price for a forward contract on this stock maturing in six months from now? The risk-free rate is r = 5%. Choose the best answer. (a) $153.130 (b) $123.521 (c) $121.820 (d) $91.145

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