Question
Assume a dividend paying LMN stock is currently priced at AUD85 and the present value of the dividend anticipated during the life of the options
Assume a dividend paying LMN stock is currently priced at AUD85 and the present value of the dividend anticipated during the life of the options is AUD 3. The one-year maturity with strike price AUD 95 European call and put are trading at AUD 8 and AUD 10, respectively. What is the one-year forward price on the stock?
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
