Consider a RM50 stock. Suppose RM1 dividend will be paid in every 3 months and the continuously compounded risk-free rate is 6%. a. Calculate the price of a prepaid forward contract that expires 1 year from today, immediately after the fourth-quarter dividend (2.5 Marks) b. Calculate the price of a forward contract that expires at the same time. (2.5 Marks) C Assuming the 3-month forward price is RM55.50, calculate the annualized forward premium (2.5 Marks) d. Using the answer of question 2c and assuming the 3-month forward price is RM55.50, calculate the annualized continuous dividend yield. (4.5 Marks) [Total: 12 Marks] Upload file