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kindly answer the question as soon as possible your answer will be rated expiration? Q.2 assume that you own a dividend-paying stock currently worth $120.

image text in transcribedkindly answer the question as soon as possible your answer will be rated

expiration? Q.2 assume that you own a dividend-paying stock currently worth $120. You plan to sell the stock in 250 days. In order to hedge against a possible price decline, you wish to take a short position in a forward contract that expires in 250 days. The risk-free rate is 5.25 over the next 250 days; the stock will pay dividends according to the following schedule: Days to Next Dividend Dividends per Share 30 $2.25 120 $2.25 210 $2.25 A. Calculate the forward price of a contract established today and expiring in 250 days. B. It is now 100 days since you entered the forward contract. The stock price is $1 15. Calculate the value of the forward contract at this point. C. At expiration, the price of the stock is $130. Calculate the value of the forward contract at expiration

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