(Mark Value = 3) 5. A one-year forward contract on a stock has a price of $75. The stock is expected to pay a dividend o
Posted: Sat Feb 26, 2022 9:12 am
(Mark Value = 3)
5. A one-year forward contract on a stock has a price of $75.
The stock is expected to pay a dividend of $1.5 at two future
times, today (time 0) and six months from, and the annual effective
risk-free rate is 6%.
Calculate the current stock price.
show work
5. A one-year forward contract on a stock has a price of $75.
The stock is expected to pay a dividend of $1.5 at two future
times, today (time 0) and six months from, and the annual effective
risk-free rate is 6%.
Calculate the current stock price.
show work