KMW, Inc. plans to pay a dividend of $0.50 per share 3 and 6 months from today. The KMW stock price today is $36.00 and the continuously compounded quarterly interest rate is 1.5%. What is the price of a 6-month prepaid forward contract, which matures immediately after the second dividend?

Answer rating: 100% (QA)

The price of the 6 month prepaid forward contract wo... View the full answer