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Calculate the value of the investor long forward on august

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Reference no: EM132761725

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

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

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

Reference no: EM132761725

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