Question: In 2 0 2 1 , a stock was worth 2 0 0 dollars on January 1 st , and paid the following dividends: 1

In 2021, a stock was worth 200 dollars on January 1st, and paid
the following dividends: 17 dollars on April 1st,27 dollars on July 1st, and 21 dollars
on October 1st. The effective annual interest rate was 6%. Suppose that on November
1st of that year, you met someone who had taken a short forward position on that stock
on January 1st, with delivery on January 1st of the next year (2022). At that time, the
stock price was at 150 dollars, and the person you met would pay you x dollars to give
you their position. Should you have accepted their offer if:
1. x =6 dollars?
2. x =7 dollars?
For both cases, justify your answer. If the answer is yes, explain what steps you would
have followed in order to end up with a profit.

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