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Consider a 10-month forward contract on ABC Ltd. stock with a price of Rs.100.Assume that...

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Finance

Consider a 10-month forward contract on ABC Ltd. stock with a price of Rs.100.Assume that the risk-free rate of interest (continuously compounded) is 10% per annum for all maturities. Also assume that dividends of 2 rupees per share are expected after three months, six months, and nine months. Find the forward price of the contract?

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