Suppose the stock price is 35 and the continuously, Ask an Expert

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Suppose the stock price is $35 and the continuously compounded interest rate is 5%.

a) What is the 6-month forward price, assuming dividends are zero?

b) If the six-month forward price is $35.50, what is the annualized forward premium?

c) If the forward price is $35.50, what is the annualized continuous dividend yield?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92352136

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