Question: need all work on paper Question #36 (5 points) Suppose the spot price of an investment asset is $60. The risk-free rate of interest (continuously
need all work on paper
Question #36 (5 points) Suppose the spot price of an investment asset is $60. The risk-free rate of interest (continuously compounded) is 6%. Dividends are expected in 2 months, 4 months, and 6 months in the amount of $0.75 each. (1) What is the discounted value of the applicable dividends? (2) What is the six-month forward price of the asset? 352 words LE Focus FO - 212% 13 PR 4
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