What is the fair forward price for delivery of cba shares

Assignment Help Finance Basics
Reference no: EM132623236

Commonwealth Bank (CBA) shares are currently trading at $75. Three months from now, CBA will pay a dividend of $2.5 per share. If the riskless interest rate is 5% pa, what is the fair forward price ("F") for delivery of CBA shares in 17 months time?

Enter your answer to 2 decimal places. Do not enter the dollar sign "tiny_mce_markerquot;.

Reference no: EM132623236

Questions Cloud

Determine what is the cash flow from operating activities : Determine What is the cash flow from operating activities? Change in operating assets $400. Change in long term liabilities $300
Calculate the trader total net loss : If the options are exercised when the stock price is $27.1, calculate the trader's total net loss
What is the trader net profit : If the call option is exercised when the stock price is $68.9, what is the trader's net profit
Cost comparison analysis : Economic issues are always to be considered during the process of program planning and evaluation.
What is the fair forward price for delivery of cba shares : If the riskless interest rate is 5% pa, what is the fair forward price ("F") for delivery of CBA shares in 17 months time?
Implementing a public health program : A proposal for a public health program to address that disease within your community.
What themes do you feel warrant further reflection and why : Give your impression of the movie with a brief plot summary, making sure to be CONCISE.Share the scenes that had either the greatest impact on your thinking.
Calculate the fair forward price for delivery : Silver is currently trading at $20 per ounce. Assume that the storage costs for silver are 1% pa. The riskfree rate is 4% pa.
Discuss the material weakness that offer a specific course : Briefly discuss the material weakness that you choice and offer a specific course of action that would help to mitigate the issue.

Reviews

Write a Review

Finance Basics Questions & Answers

  Experienced a recent decline in service

Identify an organization where service is lacking, or that has experienced a recent decline in service.

  What does double taxation of corporate income mean

What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.

  What is the invoice price

You purchase a bond with a coupon rate of 9.3 percent and a clean price of $945. If the next semiannual coupon payment is due in two months, what is the invoice price?

  How has fha achieved the goals for which it was established

Explain the difference between loan underwriting commitments made by the VA and those made by HUD/FHA.

  Determine the two possible stock prices for the next period

Construct a hedge by combining a position in stock with a position in the call. Show that the return on the hedge is the risk-free rate regardless of the outcome, assuming that the call sells for the value you obtained in part c.

  Explain the multiple capital budgeting methods

Discuss the potential problem that can occur when using multiple capital budgeting methods to rank mutually exclusive projects.

  What are organizational effectiveness goals

What are organizational effectiveness goals and state one

  What is the initial cost of the plant if the company

The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

  A compute the coefficient of variation for each project and

mcenro wishes to decide between two projects x and y. by using probability estimates he has determined the following

  How much money did earl save by using the savings account

How much money did Earl save by using the savings account and paying all at once rather than paying the finance charge to the insurance company

  What are the differences between real and nominal rates

what are the differences between real and nominal rates? explain why this is important to induce action on the part of

  Npv-sensitivity-risk-bias-ethics in capital budgeting

Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net present value (NPV).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd