Suppose the stock price is 50 and the continuously, Ask an Expert

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Suppose the stock price is $50 and the continuously compounded interest rate is 10%.

What is the price of a 4-month forward price, assuming dividends are zero?

If the 4-month forward price is $51.1, what is the annualized forward premium?

If the 4-month forward price is $51.1 and the stock pays continuous dividends, what is the annualized continuous dividend yield rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92056616

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