[Essay, 4 pts) A stock is expected to pay a dividend of $1 per share...
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[Essay, 4 pts) A stock is expected to pay a dividend of $1 per share in four months. The stock price is $40. The risk-free rate of interest is 5% per annum with continuous compounding for all maturities. An investor has just taken a short position in a six- month forward contract on the stock. What is the forward price? 3 (12pt) TT TT Paragraph Arial . E. T
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