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ii) Calculate the price for an 8 month forward contract on an asset that pays dividends of 10 per quarter where the dividends are paid

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ii) Calculate the price for an 8 month forward contract on an asset that pays dividends of 10 per quarter where the dividends are paid quarterly in advance and the next dividend is due in exactly 3 months. The current price of the asset is 50. Assume a risk free rate of interest of 5% per annum convertible half yearly and no arbitrage. [5]

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