- 4 It Is April 1 2021 And You Observe That The Settlement Price For Four Year Futures Contracts Written On A Stock Tha 1 (13 KiB) Viewed 14 times
4. It is April 1", 2021 and you observe that the settlement price for four-year futures contracts written on a stock tha
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
4. It is April 1", 2021 and you observe that the settlement price for four-year futures contracts written on a stock tha
4. It is April 1", 2021 and you observe that the settlement price for four-year futures contracts written on a stock that trades for $50 in the spot market is $60. If the stock is expected to pay constant annual dividends at the end of each December for the next four years and the risk-free rate is quoted as 10% in continuously compounded annual terms over all maturity horizons, what is the expected size of the fim's dividends?