Question: b) Consider an 11-month forward contract on a dividend paying stock that is currently traded on an exchange at 35. The company pays a fixed

b) Consider an 11-month forward contract on a dividend paying stock that is currently traded on an exchange at 35. The company pays a fixed dividend of 0.56 quarterly and the next dividend is expected in 3 months. Given that the continuously compounded risk-free rate of interest is 7% per annum for all maturities, what is the no-arbitrage (or fair) price of the forward contract?

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