This stock pays dividend payment of 3 each in first year, Financial Management

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This stock pays dividend payment of 3 each in first year

A LONG forward contract that was negotiated some time ago will expire in 2.5 years and has a delivery price of $60. The current stock price underlying this forward contract is $65. The risk-free rate with continuous compounding is 7% for all maturities.

This stock pays dividend payment of $3 each in first year and second year, respectively. What is the value of this forward contract?

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Financial Management: This stock pays dividend payment of 3 each in first year

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Financial Management: This stock pays dividend payment of 3 each in first year

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