Question
The share price of a certain stock is currently $65. The stock will pay an annual dividend of $5 in the following 3 year. The
The share price of a certain stock is currently $65. The stock will pay an annual dividend of $5 in the following 3 year. The first dividend will be paid one year from now. With the continuous compounding interest rate 2%, determine the forward price of the forward contract that matures in 3 years.
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Authors: Daren Price
1st Edition
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