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(A) Suppose the NTN stock price is AUD 20, and the continuously compounded interest rate is 6% p.a. (i) What is the 9-month forward price,

(A) Suppose the NTN stock price is AUD 20, and the continuously compounded interest rate is 6% p.a.

(i) What is the 9-month forward price, assuming dividends are zero? (2 marks)

(ii) Ignore the assumption of part (i). If the 9-month forward price is AUD 20.50, what is the annualised continuous dividend yield? (2 marks)

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