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Today is June 1, 2021. A stock, in two years (June 1, 2023), is expected to pay a dividend of $100/share. Current price of the

Today is June 1, 2021. A stock, in two years (June 1, 2023), is expected to pay a dividend of $100/share. Current price of the stock is $800. Interest rate is 10% (compounded annually). Assume that a person has taken a long position on forward contract. Maturity on this contract is 3 years (June 1, 2024). Compute the initial value and the price of this contract.

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