A stock index currently has a spot price of $1,200. The risk-free rate is 5%,...
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Accounting
A stock index currently has a spot price of $1,200. The risk-free rate is 5%, and the index pays a continuous dividend of 7%. To create a synthetic 11-month forward contract, you would need to borrow enough to purchase ______ units of the index.
.
0.9818
b.
0.9552
c.
0.9378
d.
1.0663
e.
1.0185
explain in steps
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