A one-year forward contract on a stock has a price of $75. The stock is expected to
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A one-year forward contract on a stock has a price of $75. The stock is expected to pay a dividend of $1.50 at two future times, six months from now and one year from now, and the annual effective risk-free interest rate is 6%. Calculate the current stock price.
(A) 70.75
(B) 73.63
(C) 75.81
(D) 77.87
(E) 78.04
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