Question
Consider a stock expected to pay a dividend $5 per share in three months from now. The current stock price is $100, and the annualized
Consider a stock expected to pay a dividend $5 per share in three months from now. The current stock price is $100, and the annualized risk-free rate is 10% . An investor tries to take a long position in a one-year forward contract on the stock. What is the forward price?
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
