Question a explain the cost-of-carry model with dollar, Ask an Expert

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Question: a. Explain the cost-of-carry model with dollar dividends in your own words.

b. Justify why the spot price considered in the model is net of the present value of all future dividends paid over the life of the contract.

c. Why don't we adjust for dividends that are paid after the forward's maturity date?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92266702

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