5 Assume you live in a risk neutral world A stock has a spot price of 10 and pays a one time special dividend of 1 in 6 months The annual effective interest rate is 5 per year a Calculate the prepaid forward price of the stock today b Suppose the stock price in one year can take on one of the thre...

a Prepaid forward price of the stock today Spot price ...

5. Assume you live in a risk-neutral world. A stock has a spot price of 10...

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Principles of Corporate Finance

ISBN: 978-1259144387

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Authors: Richard Brealey, Stewart Myers, Franklin Allen

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5. Assume you live in a risk-neutral world. A stock has a spot price of 10...

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