Consider a 1 year forward contract on a stock when the stock price is $30. We assume that the risk-free rate of interest

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Consider a 1 year forward contract on a stock when the stock price is $30. We assume that the risk-free rate of interest

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Consider A 1 Year Forward Contract On A Stock When The Stock Price Is 30 We Assume That The Risk Free Rate Of Interest 1
Consider A 1 Year Forward Contract On A Stock When The Stock Price Is 30 We Assume That The Risk Free Rate Of Interest 1 (75.08 KiB) Viewed 25 times
Consider a 1 year forward contract on a stock when the stock price is $30. We assume that the risk-free rate of interest continuously compounded is 6% per annum for all maturities. We also assume that dividends of $4 per share are expected after three months, six months nine months and 12 months. What is the present value of the dividends? O $4.00 O $15.41 O $3.77 O $11.47
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