The spot price of a stock is $100 and the continuous compounding risk-free rate for all maturities

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The spot price of a stock is $100 and the continuous compounding risk-free rate for all maturities is 9%. The stock pays a $5 dividend only six months later this year. What is the equilibrium price of the one-year forward contract?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Posted Date: Jun 27, 2023 03:09 AM

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The spot price of a stock is $100 and the continuous compounding risk-free rate for all maturities

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Principles of Corporate Finance

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