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A long forward contract on a dividend-paying stock was entered some time ago. It currently has 12 months to maturity. Th
Posted: Tue Apr 26, 2022 10:45 am
by answerhappygod
- A Long Forward Contract On A Dividend Paying Stock Was Entered Some Time Ago It Currently Has 12 Months To Maturity Th 1 (25.06 KiB) Viewed 47 times
A long forward contract on a dividend-paying stock was entered some time ago. It currently has 12 months to maturity. The risk-free rate of interest with quarterly compounding is 6.05% per annum for all maturities. The delivery price is $95. The stock price is $100, dividends of $2.00 per share are expected after 3 months, 6 months, and 9 months. What is the value of this long forward contract?