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Question A company share has a spot price of 200p today and an over the counter Forward Contract is to be arranged for the purchase

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A company share has a spot price of 200p today and an "over the counter" Forward Contract is to be arranged for the purchase of the company share in 1 years time.

Assuming that the applicable rate of interest is 5%, inflation is currently 2.5% and that there is an anticipated dividend of 3p payable within the next year, what would be the likely Forward price of the company share?

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