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You are given the following information about Stock XYZ: i. The current price of the stock is 35 per share. ii. The expected continuously compounded
You are given the following information about Stock XYZ:
i. The current price of the stock is 35 per share.
ii. The expected continuously compounded annual rate of return is 8
iii. The stock pays semi-annual dividends of 0.32 per share, with the next dividend to be
paid two months from now.
The continuously compounded annual risk-free interest rate is 4%.
Calculate the current one-year forward price for stock XYZ.
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