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TFS is trading at $50 / share.It has no dividend and the current cc interest rate is 4%.What is the 2 month forward price? TFS
TFS is trading at $50 / share.It has no dividend and the current cc interest rate is 4%.What is the 2 month forward price?
TFS is still trading at $50 / share and the cc interest rate r = 4%.Chandrika believes that TFS will (for the first time ever!) pay a dividend of $1 exactly 1 month (1/12 of a year) from now.When she calculates the 2 month forward price for TFS, what does she get?
What is the best trade for Chandrika to make that will pay her if view about the dividend is correct?
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