Stock A is priced at 95 and pays no dividends. The 6-month forward price of Stock A is 98.88,Stock B is priced at 98 and pays a dividend after 8 months. The 1-year pre-paid forward price of Stock B is the same as the 6-month pre-paid forward price of Stock A.Calculate the dividend amount for Stock B.

Answer rating: 100% (QA)

To calculate the dividend amount for Stock B we can use the formula for the prepaid forward price F0 ... View the full answer