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Suppose the price of a stock is $50 at the beginning of the year, the risk-free rate is 2%, assumed constant and $2 dividend is
Suppose the price of a stock is $50 at the beginning of the year, the risk-free rate is 2%, assumed constant and $2 dividend is to be paid after half a year. For a long forward position with delivery in one year, find its value after 9 months if at that time the stock price turns out to be
a) $52
b) $55
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