Question
the spot price of an investment asset is $30. It provides a fixed dividend yield of 5% with annual compounding. If the risk-free rate is
the spot price of an investment asset is $30. It provides a fixed dividend yield of 5% with annual compounding. If the risk-free rate is 10% with continuous compounding for all maturities. What is the three-year forward price?
A. $44.98
B. $34.98
C. $34.33
D. $44.33
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Financial Management And Policy
Authors: James C. Van Horne
11th Edition
0137512236, 9780137512232
