Question: Suppose that you enter into a four-month forward contract on a stock with the stock price of $1 0 0. The continuous compound ing risk-free

Suppose that you enter into a four-month forward contract on a stock with the stock price of $100. The continuous compounding risk-free interest rate is 10% per annum and the dividend yield on the stock is 1% per quarter. What should be the equilibrium forward price?

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