Question: - Please make sure you provide detailed procedures for solving the problems and show me that you really understand how to solve the problems. Answers

- Please make sure you provide detailed procedures for solving the

- Please make sure you provide detailed procedures for solving the problems and show me that you really understand how to solve the problems. Answers without details may incur score deductions. 1. Using the no-arbitrage argument to prove the forward price of a stock pays dividends is F(t,T)=Ste(rq)(Tt) where q is a known dividend yield, expressed as a percentage of the stock price on a continually compounded per annum basis. You need to detail the transactions you make to construct the portfolio and low the portfolio value changes

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