Suppose the stock price is $35 and the continuously compounded interest rate is 5%. a. What is
Question:
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? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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a We plug the continuously compounded interest rate and the time to expiration in y...View the full answer
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