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The current stock price of IMB is 65 dollars and Alex holds a 1-year long forward contract on the IMB stocks. Suppose that the stock

The current stock price of IMB is 65 dollars and Alex holds a 1-year long forward contract on the IMB stocks. Suppose that the stock price is $70 in 6 months and the risk-free rate is 6% p.a., continuously compounded. What is the forward price in the forwards after 6 months?

a.

$68.58.

b.

$69.02.

c.

$70.32.

d.

$71.93.

e.

$72.13.

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