Question: consider an 11 month forward contract on a stock A when the stock price is 84$. we assume the dividends is 8.8$ per share are
consider an 11 month forward contract on a stock A when the stock price is 84$.
we assume the dividends is 8.8$ per share are expected after 3 months 6 months and 9 months.
we assume the tisk free rates of intrests continuously compounded are as per the below,
1.2% per annum for 3 months maturity.
2% per annum for 6 months maturity
2.5% per annum for 9 months maturity
4.0% per annum for 11 months maturity
4.9% per annum for 12 months maturity
what should be the forward price ?
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