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A $40 stock pays a continuous dividend of 5%. The continuously compounded risk-free rate is 9%. What is the price of a forward contract that

A $40 stock pays a continuous dividend of 5%. The continuously compounded risk-free rate is 9%. What is the price of a forward contract that expires 7 months from today?

a. $39.08

b. $41.18

c. $40.94

d. $38.85

e. $38.39

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