Calculte the forward price today

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Stock in Kyber Inc. is currently priced at $100. Kyber Inc. is expected to pay a dividend of $4 per share in three months. The risk-free rate of interest is 8%. An investor has just taken a long position in a four-month forward contract on the stock.

A) What is the forward price today?

Two months later, stock in Kyber Inc. is selling for $130. The risk-free rate remains 8%.

B) What is the value of the forward contract at this point in time?

Reference no: EM131996554

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