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Suppose the stock price is $60 and the continously compounded interest rate is 8%. a) What is the price of a 2 - month forward
Suppose the stock price is $60 and the continously compounded interest rate is 8%. a) What is the price of a 2 - month forward price, assuming dividends are zero? $ ? b) If the 2 - month forward price is $61.25, what is the annualized forward premium? % ? c) If the 2 - month forward price is $61.25, what is the annualized continous dividend yield? %
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