# Question

Suppose the stock price is $35 and the continuously compounded interest rate is 5%.

a. What is the 6-month forward price, assuming dividends are zero?

b. If the 6-month forward price is $35.50, what is the annualized forward premium?

c. If the forward price is $35.50, what is the annualized continuous dividend yield?

a. What is the 6-month forward price, assuming dividends are zero?

b. If the 6-month forward price is $35.50, what is the annualized forward premium?

c. If the forward price is $35.50, what is the annualized continuous dividend yield?

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