Question: A 3 - month forward contract is issued on 1 February 2 0 0 1 on a stock with a price of $ 1 5

A 3-month forward contract is issued on 1 February 2001 on a stock with a price of $150 per share. Dividends are received continuously and the dividend yield is 3% per annum. In addition, it is anticipated that a special dividend of $30 per share will be paid on 1 April 2001. Assuming a risk-free force of interest of 5% per annum and no arbitrage, calculate the forward price per share of the contract.

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