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QUESTION
A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months.
A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months. The stock price is $54, and the risk-free interest rate is 11% per annum with continuous compounding for all maturities. An investor has just taken a long position in a 5-month forward contract on the stock. What is the forward price?
A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months.The stock price is $54, and the risk-free interest rate is 11% per annum with continuouscompounding for all...