Suppose XYZ stock is trading at 20. Suppose the effective annual interest rate is 5%,...

50.1K

Verified Solution

Question

Finance

Suppose XYZ stock is trading at 20. Suppose the effective annual interest rate is 5%, so that 100 dollars lent for 1 year will return 105 dollars. What is a fair 1-year forward price for XYZ stock?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students