Question: NEED HELP WITH THSI QUESTION!! WITH EXPLANATIONS The current price of a stock is $50. The stock is expected to pay a dividend of $1
NEED HELP WITH THSI QUESTION!! WITH EXPLANATIONS
The current price of a stock is $50. The stock is expected to pay a dividend of $1 after 6 months. If the 6-month and 1 year interest rates are 5% and 5.5% per annum continuously compounded respectively, what is the 1-year forward price of the stock? A. $53.589 B. $52.564 C. $51.797 D. $50.538 E. None of the above
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