Seven months ago, a stock was expected to pay a dividend of $0.60 per share...
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Finance
Seven months ago, a stock was expected to pay a dividend of $0.60 per share in two months, in five months and in eight months. The stock price was $35, and the risk-free rate of interest was 7% per annum with continuous compounding for all maturities. You had taken a short position in a nine- month forward contract on the stock.
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