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Question 6 3 pts You enter into a forward contract to purchase one share of XYZ in 1.5 years. You are given the following
Question 6 3 pts You enter into a forward contract to purchase one share of XYZ in 1.5 years. You are given the following information regarding XYZ: The value of one share of XYZ today is $120. The stock will pay a dividend of $4 in one year, and no other dividends will be paid before expiration of the contract. In addition, the risk-free rate is 8%, compounded continuously, and the agreed upon price for the contract is $125. What is the value of the contract? Give your answer to two decimal places. Upload Choose a File
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