Stock xyz pays dividends of 2 every three months namely at


Stock XYZ pays dividends of $2 every three months, namely at T1 = 2/12, T2 = 5/12, T3 = 8/12, . . .. Consider a forward contract on XYZ with maturity T = 9/12, i.e 9 months. If S0 = 200, F = 200 and r = 0.04, construct an arbitrage strategy to exploit the mispriced forward.

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Financial Management: Stock xyz pays dividends of 2 every three months namely at
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