Question: Please answer the entire question, and show work so I can learn. Suppose that stock Y is currently priced at 25 per share and the

Please answer the entire question, and show work so I can learn.

Suppose that stock Y is currently priced at 25 per share and the stock pays dividends continuously at a rate proportional to its price at a constant rate of 3%. You purchase 200 shares of stock Y and invest all dividends by purchasing extra shares of stock Y. The continuously compounded risk-free rate is 5%. After 4 months, you sell the stock when the stock price is 25.9.

Calculate the 4-month profit.

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