Two parties enter a stock forward at time t 0 that expires at t T The underlying stock pays a stream of dividends at a known and constant dividend yield 8 The risk free rate is a known constant r Use continuous compounding (a) Suppose I want to have one share of the stock at time T by buying some ...

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Two parties enter a stock forward at time t=0 that expires at t=T. The underlying stock...

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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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Posted Date: Apr 04, 2023 03:57 AM

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Two parties enter a stock forward at time t=0 that expires at t=T. The underlying stock...

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Derivatives Markets

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