The stock price is 50 risk free rate is 8 an investor has


A stock is expected to pay a dividend of $1.50 per share in 2 months and 5 months. The stock price is $50, risk free rate is 8%. An investor has taken a long position in a 6 month forward contract on a stock Three months later the price of the stock is $48 and the risk free rate is 8%. What is the forward price ?

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Financial Management: The stock price is 50 risk free rate is 8 an investor has
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