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Suppose XYZ stocks price is $40 and the continuously compounded interest rate is 5%. a. What is the 6-month forward price, assuming dividends are zero?

Suppose XYZ stocks price is $40 and the continuously compounded interest rate is 5%.

a. What is the 6-month forward price, assuming dividends are zero?

b. If the forward price is $40.50, what is the annualized continuous dividend yield?

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