ABC inc. plans to pay $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABC's share price today is $45.60
ABC inc. plans to pay $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABC's share price today is $45.60 and the continuously compounded quarterly interest rate is 21%. what is the price of a forward contract that expires immediately after the second dividend?
A) $43.55 B) $45.28 C) $46.24 D) $49.40
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Authors: Robert Higgins, Jennifer Koski, Todd Mitton
13th Edition
1260772365, 978-1260772364
