Suppose the stock price is $35 and the continuously compounded interest rate is 5%. a. What is the 6-month forward price, assuming dividends are zero? b. If the 6-month forward price is $35.50, what...


Suppose the stock price is $35 and the continuously compounded interest rate is 5%.


a. What is the 6-month forward price, assuming dividends are zero?


b. If the 6-month forward price is $35.50, what is the annualized forward premium?


c. If the forward price is $35.50, what is the annualized continuous dividend yield?



May 05, 2022
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