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Question 7 A stock's current price is 209 and it has declared dividends of $0.8/share each to be...

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Finance

Question 7


A stock's current price is 209 and it hasdeclared dividends of $0.8/share each to be paidin 38 days, 158 days, and 278 daysfrom now. You are purchasing a 300-day forward contract.(Assume that the risk free rate is 2%.)


What is the value of this forward contract 200 days afterinitiation, if the stock's price at that time is 205?

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Question 7A stock's current price is 209 and it hasdeclared dividends of $0.8/share each to be paidin 38 days, 158 days, and 278 daysfrom now. You are purchasing a 300-day forward contract.(Assume that the risk free rate is 2%.)What is the value of this forward contract 200 days afterinitiation, if the stock's price at that time is 205?

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