consider an 7 month forward contract on a stock A when the stock price is 51$. we assume that dividends of 3.4 per share are expected after 3 months, six months, and nine months.

consider an 7 month forward contract on a stock B when the stock price is 51$. we assume that stock b privide a yield is 5.1% per annum with continuous compounding.

we assume that the risk free rate of the interest continuously compound is 8.8% per annum gor all mattuties.

what should be the difference between the forward price of stock a and the forward price of stock B [F0(A) - F0(B)]

select one

a. 1.57

b. -5.35

c. -8.70

d. none of the answers are correct

e. -1.93