Question
A $100 stock pays a $1 dividend every 3 months with the first dividend coming 2 months from today. The continuous annual risk free rate
A $100 stock pays a $1 dividend every 3 months with the first dividend coming 2 months from today. The continuous annual risk free rate is 6%. What is the price of a one-year forward contract on this stock?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
