If the risk-free rate is 12 per annum with continuous, Financial Management

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If the risk-free rate is 12 per annum with continuous

You have entered into a LONG forward contract on a dividend-paying stock some time ago, and this will expire in six months. It has a delivery price of $40 and the current stock price is $35. The stock provides a fixed dividend yield of 8% with semi-annual compounding. If the risk-free rate is 12% per annum with continuous compounding, what is the value of this long forward contract?

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Financial Management: If the risk-free rate is 12 per annum with continuous

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Financial Management: If the risk-free rate is 12 per annum with continuous

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