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A 550 stock pays a continuous dividend of 8%. The continuously compounded risk-free rote is 6%. What is the price of a prepaid forward contract

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A 550 stock pays a continuous dividend of 8%. The continuously compounded risk-free rote is 6%. What is the price of a prepaid forward contract that expires 5 months from today? Selested Answer: 8 d. 549.59 Answers: (a. $51.69 b. $50,42 (c) 54836 d. 549.59 e. $48.17

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