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expain in a easy way Stock ABC is priced at $50 now and offers a 4% continuous dividend yield. The continuously compounding risk-free rate is

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Stock ABC is priced at $50 now and offers a 4% continuous dividend yield. The continuously compounding risk-free rate is 6%. (a) What is the price of a forward contract that expires 1 year from today? (1 point) (b) Suppose you observe a one-year forward price of $52.What action would you take and what is the arhitrage would you get? (2 points) forward (c) Suppose you observe a one-year forward price of $50. What action would you take and what is the arbitrage would you get? (2 points)

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