Calculate the value of the investor long forward on August

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Reference no: EM132747620

Question - An investor entered into a 1-year forward contract on January 1, when the price of the stock was 75.

You are given: The stock pays semiannual dividends of 1, with the first dividend payment occurring on June 1. The continuously compounded interest rate is 3%. On August 1, the stock price rose to 82.

Calculate the value of the investor's long forward on August 1.

Reference no: EM132747620

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