Question: A future contract on a share, which pays dividend at a continuously compounded rate of 4%, is written when share has a price of $650,

A future contract on a share, which pays dividend at a continuously compounded rate of 4%, is written when share has a price of $650, and the continuously compounded risk-free interest rate is 6%. the contract is priced at $655 and expires in 6 months.

(a) what should have been the future prices?

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