A $50 stock pays an 8% continuous dividend. The continuously compounded riskfree rate is 6%. a. What
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A $50 stock pays an 8% continuous dividend. The continuously compounded riskfree rate is 6%.
a. What is the price of a prepaid forward contract that expires 1 year from today?
b. What is the price of a forward contract that expires at the same time?
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a The owner of the stock is entitled to receive dividends We have to offse...View the full answer
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