Question
Calculate the fair price of a 120-day forward contract for Company A's stock, On the spot market, Company A's stock is traded at $67, Company
Company A will pay a dividend of $4 per share in 100 days. The risk-free interest rate in US dollars is 1.75% per annum. The basis of calculation
is fact. / 365.
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Derivative Pricing
Authors: Ambrose Lo
1st Edition
0367734214, 978-0367734213
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