Consider a forward contract on a non-dividend-paying stock.Is the (properly determined) forward price of this stock greater

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Consider a forward contract on anon-dividend-payingstock.Is the (properly determined) forward price of this stock greater than, less than or equal to the expected time-Tspot price of this stock, E(S_T)?Why?

Posted Date: May 15, 2024 01:04 PM

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Consider a forward contract on a non-dividend-paying stock.Is the (properly determined) forward price of this stock greater

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The properly determined forward price of a nondividendpaying stock would typically be equal to the e... View the full answer

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