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Consider a 1 year forward contract on a dividend paying stock when the stock price is $30. We assume that the risk-free rate of interest
Consider a 1 year forward contract on a dividend paying stock when the stock price is $30. We assume that the risk-free rate of interest continuously compounded is 6% per annum for all maturities. If the yield of dividends equal to 3% annually, What is the theoretical forward price? $30 O $31.85 O $30.9 $28.25
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