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The price of IBM today is at $50, the continuously compounded interest rate is 1% per annum. (10 points) What is the futures price on

The price of IBM today is at $50, the continuously compounded interest rate is 1% per annum.

(10 points) What is the futures price on IBM with expiration in 1 year if you know that IBM will pay a dividend in exactly six months from now in the amount of 4% of its stock price at that time? What positions in a zero-coupon bond and a stock will create synthetically the futures?

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