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A stock is currently priced at 5 0 and pays 0 . 5 dollar quarterly dividends, with the first coming 1 month from today. The
A stock is currently priced at and pays dollar quarterly dividends, with the first coming month from today. The current time point is t and the continuously compounded riskfree interest rate is For simplicity, take month as years.
Based on the above information, answer questions and
Find the price of the forward that delivers share of the stock at time T
A
B
C
D
E None of the above is close
Assuming So Find the time t price of a prepaid forward that delivers share of the stock at time T
A
B
C
D
E None of the above is close
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