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B. Babylon Corp stock is currently selling at $50/share. It just paid its quarterly dividend. The 3-mo and 6-mo spot interest rates are 4.00% and
B. Babylon Corp stock is currently selling at $50/share. It just paid its quarterly dividend. The 3-mo and 6-mo spot interest rates are 4.00% and 4.22%, each (APR). What should be the six-month (ex-dividend) forward price of Babylon stock, assuming the next two dividend payments are known to be $1.00/share and $1.25/share, respectively, and the second dividend payment will accrue to the owner of the stock just prior to the six-month forward settlement? B. Babylon Corp stock is currently selling at $50/share. It just paid its quarterly dividend. The 3-mo and 6-mo spot interest rates are 4.00% and 4.22%, each (APR). What should be the six-month (ex-dividend) forward price of Babylon stock, assuming the next two dividend payments are known to be $1.00/share and $1.25/share, respectively, and the second dividend payment will accrue to the owner of the stock just prior to the six-month forward settlement
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