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Fair forward price specified in forward contract

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A stock is expected to pay a dividend of $2 per share in 2 months and in 5 months. The stock price is $100, and the risk-free rate of interest is 10% per annum annually compounding for all maturities. An investor has just taken a short position in a 6-months forward contract on the stock. What is a fair forward price specified in the above forward contract to let its value be zero at initiation?

Reference no: EM133253360

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