Question: A stock's current price is 209and it has declared dividends of $0.8/share each to be paid in38days,158days,and278days from now.You are purchasing a300-day forward contract. (Assume
A stock's current price is 209and it has declared dividends of $0.8/share each to be paid in38days,158days,and278days from now.You are purchasing a300-day forward contract. (Assume that the risk free rate is2%.)
What is the value of this forward contract 200days after initiation,if the stock's price at that time is 205?
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