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Please provide answers. IBM is currently traded at $125. The stock pays quarterly dividend of $1.63 per share. Assume that this is the beginning of
Please provide answers.
IBM is currently traded at $125. The stock pays quarterly dividend of $1.63 per share. Assume that this is the beginning of a quarter so that the next dividend will be paid exactly one quarter from now. Assume a constant and continuously compounding interest rate on dollar at 1%. What should be the 1 -year forward price on IBM? (Round to 2 decimals) "Chinese RMB is currently priced at $17 per 100 yuan. Assume a continuously compounding interest rate on dollar at 1%, and a continuously compounding interest rate on RMB at 5\%. Assume both RMB and dollar can be traded freely without cost. What is the 2-year forward price on 100 yuan? (Round to 2 decimals)Step by Step Solution
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