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Calculate the forward price for an agreement

Assignment Help Financial Accounting
Reference no: EM132969601

Question - You are given the following information about a stock:

i) The current stock price is 70.

ii) The stock pays discrete quarterly dividends of 1.40.

iii) The stock just paid a dividend.

iv) The continuously compounded risk-free rate is 4%.

Required - Calculate the forward price for an agreement to deliver 150 shares of the stock eleven months from now.

Reference no: EM132969601

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