Question
A $56 stock pays a dividend of $1.40 every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate
A $56 stock pays a dividend of $1.40 every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 8%. What is the price of a prepaid forward contract that expires 6 months from today, immediately after the second dividend? Answer= 53.28 Please show all the steps. Thanks
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Healthcare Financial Management Applied Concepts And Practical Analyses
Authors: Cassandra R. Henson
1st Edition
0826144748, 978-0826144744
