Question: A stock's current price is 79and it has declared dividends of $1.3/share each to be paid in 38days,158days,and 278days from now.Price a 300-day forward contract

A stock's current price is 79and it has declared dividends of $1.3/share each to be paid in 38days,158days,and 278days from now.Price a 300-day forward contract assuming that the risk free rate is2%. Provide the forward price rounded to two decimals.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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!

Please provide clear explanation. Thank you. Let f(x)=3x3-\\/16 x4 The area between the graph of f and the xaxis, on the interval [0 , 2] is... Use decimal notation, and round your answer to two...

If you save $60 a month and invest it in an account that pays 0.5% per month, how much will you have in 25 years? Please enter your answer in dollars (without the $ sign) to two decimals

HI! can you please answer the Long answer question #1, part h), on the attached file! Thank you very much UNIVERSITY OF MANITOBA Faculty of Management Department of Accounting and Finance Professors:...

A stock's current price is 147and it has declared dividends of $1.3/share each to be paid in38days,158days,and278days from now.Price a 300-day forward contract assuming that the risk free rate is2%.

A stock's current price is 147 and it has declared dividends of $1.3/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...

A stock's current price is 79 and it has declared dividends of $1.3/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...

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...

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

The current price for a stock index is 1350 and there are stock index futures contracts on the index with exactly three and six months to expiration. The three months contract trades in the market...

Determine the interquartile range on the followingdata. 93540 57327 05874 41528 97089 33933 89945 15112 6321 4287 4

Which marketing strategy is most effective for a product with high customization needs? Question 9 options: Personal selling Digital marketing Point of Purchase displays Vehicle wraps

A closed-form expression for the mass flow through a choked nozzle is Derive this expression. m PoA* To Y 2 R\y+1, (y+1)/(y-1)

It is observed that a 230-mm-diameter pan of water at 23C has a mass loss rate of 1.5 X 10-5 kg/s when the ambient air is dry and at 23C. (a) Determine the convection mass transfer coefficient for...

The tungsten filament described in Problem 12.29 dissipates 75 W in an evacuated spherical light bulb of 75-mm diameter. The bulb is in quiescent air and large surroundings at a temperature of 25C....

Consider a column of electric current passing through plasma (ionized gas). Filaments of current within the column are magnetically attracted to one another. They can crowd together to yield a very...

The resistor in Figure P33.55 represents the midrange speaker in a three-speaker system. Assume its resistance to be constant at 8.00 (. The source represents an audio amplifier producing signals of...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Explain the three approaches available to companies for setting expatriate employees base pay.

List the three main components of international compensation programs, and provide a specific example of each one.

Give a description of two standard employee benefits and two illustrations of enhanced benefits for U.S. employees.