Forward contract when the annualized interest rate

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Show work. A stock is currently priced at $30 and is expected to pay a dividend of $0.60 in 20 days and $0.65 in 180 days from now. The contract price for a 60-day forward contract when the annualized interest rate is 2% is closest to (assume a 365-day year):

A. $29.40 B. $29.50 C. $29.60 D. $30.00

Reference no: EM131585654

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