a ) A stock is currently priced at $ 3 0 and is expected to pay a
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a A stock is currently priced at $ and is expected to pay a dividend of $ in days and days from now. What will be the contract price for a day forward contract when the discrete interest rate is
b After days, the stock is priced at $ and the riskfree rate is still The value of the forward contract on the stock to the short position will be?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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