Question
The price of Company A's stock is $32.85 per share and the interest rate for continuous compounding is 1.1%. Company A does not pay dividends.
The price of Company A's stock is $32.85 per share and the interest rate for continuous compounding is 1.1%. Company A does not pay dividends. Suppose we enter into a forward contract on Company A stock that expires in 15 months. What forward price per share should we specify in the contract?
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Day Trading Strategies And Risk Management
Authors: Richard N. Williams
1st Edition
979-8863610528
