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A stock is expected to pay a dividend of $ 1 per share in four months and in nine months. The stock price is $
A stock is expected to pay a dividend of $ per share in four months and in nine months. The stock price is $ and the riskfree rate of interest is per annum with continuous compounding for all maturities. An investor has just taken a short position in a twlevemonth forward contract on the stock. AWhat are the forward price and the initial value of the forward contract? BSix months later, the price of the stock is $ and the riskfree rate of interest is still per annum. What are the forward price and the value of the short position in the forward contract? show all work
A stock is expected to pay a dividend of $ per share in four months and in nine months. The stock price is $ and the riskfree rate of interest is per annum with continuous compounding for all maturities. An investor has just taken a short position in a twlevemonth forward contract on the stock.
AWhat are the forward price and the initial value of the forward contract?
BSix months later, the price of the stock is $ and the riskfree rate of interest is still per annum. What are the forward price and the value of the short position in the forward contract?
show all work
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