Question: Consideran 7 month forward contract on a stock A when the stock price is $60. We assume that dividends of 53. per share are expected
Consideran 7 month forward contract on a stock A when the stock price is $60. We assume that dividends of 53. per share are expected her month months, and nine months Consider an 7 month forward contract on a stock 8 when the stock price is $60. We assume that stock provide yold of 3.7% per annum with continuous compounding We assume that the risk-free rate of interest continuously compounded is 10.0% per annum for all maturities What should be the difference between the forward price of stock A and the forward price of stock BIFOLA)-FO(B)
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