Continuous compounding for all maturities

Reference no: EM13874475

A stock is expected to pay a dividend of $2.60 per share in 1 months and in 4 months. The current stock price is $58, and the risk-free interest rate is 8% per annum with continuous compounding for all maturities. An investor has just taken a long position in a 5-month forward contract on the stock.

Reference no: EM13874475

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