Question
Apple stock currently trades at $500 per share. The present value of dividends paid in the next 6 months is $24.51 (using risk free discounting).
Apple stock currently trades at $500 per share. The present value of dividends paid in the next 6 months is $24.51 (using risk free discounting). These dividends are known today with certainty. The yield curve is flat at 4%. What is the fair forward price for a 6 month forward contract on apple stock?
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
