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Compute the implied present value of the dividend paid by company ABC within the next three months given the following information: The 3-month futures
Compute the implied present value of the dividend paid by company ABC within the next three months given the following information: The 3-month futures contract on ABC is trading at F=$185. ABC share is trading at S = $190. ABC is not special (the stock lending rate is 0%). The relevant 3-month interest rate is 10% p.a. semi-annual compound- ing, respectively.
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