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Homework 2 A stock is expected to pay a dividend of $1 per share in two months and $1.25 per share in six months. The

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Homework 2 A stock is expected to pay a dividend of $1 per share in two months and $1.25 per share in six months. The stock price is $50, and the risk-free rate is 6% per year with continuous compounding. An investor has just taken a short position in a seven-month forward contract on the stock What is the forward price? What is the initial value of the forward contract

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