Question: A stock's current price is 202 and it has declared dividends of $0.7/share each to be paid in 38 days, 158 days, and 278 days

A stock's current price is 202 and it has declared dividends of $0.7/share each to be paid in 38 days, 158 days, and 278 days from now. Price a 300-day forward contract assuming that the risk free rate is 2%.


Provide the forward price rounded to two decimals?

Step by Step Solution

3.39 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the forward price of the stock we can use the formula Forward Price Sp... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!