Six-month forward contract on the stock


A stock is expected to pay a dividend of $2.30 per share in 2 months and in 5 months. The stock price is $54, and the risk-free interest rate is 6% per annum with continous compounding for all maturities. An investor has just taken a short position in a six-month forward contract on the stock. What is the forward price?

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Finance Basics: Six-month forward contract on the stock
Reference No:- TGS056706

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