A stock is expected to pay a dividend of 150 per share in 2


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: A stock is expected to pay a dividend of 150 per share in 2
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