This stock currently trades for $50, and is expected to pay a $0.50 dividend in 30 days

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This stock currently trades for $50, and is expected to pay a $0.50 dividend in 30 days and a $0.60 dividend in 75 days. The annual risk-free rate is 5%. The current price of a 90 day forward contract on the stock is

A.$48.51
B.$49.49
C.$50.31

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Jul 15, 2022 11:49 PM

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This stock currently trades for $50, and is expected to pay a $0.50 dividend in 30 days

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MultiPeriod Dividend Discount Model D 1 060 050 30 75 ... View the full answer

Fundamentals of Futures and Options Markets

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