Calculate the fair delivery price for the forward contract. A forward contract to deliver 1,000 TST shares

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Calculate the fair delivery price for the forward contract.

A forward contract to deliver 1,000 TST shares in nine month's time. TST is currently trading at $10 and is expected to pay a dividend of $0.90 in exactly five month's time. The risk-free rate of interest is 6% p.a.

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Posted Date: May 14, 2024 01:14 PM

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Calculate the fair delivery price for the forward contract. A forward contract to deliver 1,000 TST shares

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The fair delivery price for the forward contract can be calculated using the fo... View the full answer

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