Determine what should be the level dividend amount

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Reference no: EM131995168

A stock has current price 50. Annual force of interest rate is .04. If expiration time for a forward contract is half a year, and its forward price is 50.30.

Suppose the stock pays continuous dividends, what is the annual rate?

Suppose the stock pays level discrete dividends at the end of each quarter, what should be the level dividend amount?

Reference no: EM131995168

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