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Forward Price with Dividends S(0) = 55 Dividends is paid is $2 at 3 months Risk Free Interest Rate is 5% S(T) = 60 T
Forward Price with Dividends
S(0) = 55
Dividends is paid is $2 at 3 months
Risk Free Interest Rate is 5%
S(T) = 60
T = 1 (1 year)
(a) What is the forward price today?
(b) What is the value of the forward at 8 months if the stock price at that time is $57.00?
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