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Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $30 and the risk-free interest rate (with

Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $30 and the risk-free interest rate (with quarterly compounding) is 12% per annum.

a) What is equivalent continuously compounding rate?

b) What is the forward price?

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