Question
A stock's current price is 190and it has declared dividends of $1.7/share each to be paid in38days,158days,and278days from now.You are purchasing a300-day forward contract. (Assume
A stock's current price is 190and it has declared dividends of $1.7/share each to be paid in38days,158days,and278days from now.You are purchasing a300-day forward contract. (Assume that the risk free rate is2%.)
What is the value of this forward contract 200days after initiation,if the stock's price at that time is 191?
Please provide a detailed solution answer is 2.36
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
