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A stock is currently priced at $60 per share, and will pay dividend of $0.5 in 6 months and $D in 1 year. Given an
A stock is currently priced at $60 per share, and will pay dividend of $0.5 in 6 months and $D in 1 year. Given an annual continuously compounded risk-free interest rate of 7%, the 1-year annualized forward premium of the stock is 0.0558. Assuming the forward contract matures immediately after the dividend payment in 1 year, calculate the dividend amount $D. 0.58 O 0.81 0.30 O 0.39 O 0.48
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