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What is the four year forward price

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A stock provides dividend of $1 at the end of the first, second, and third year, its spot price is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.

1) What is the four year forward price?

2) What is the value of this forward contract two years later if the forward price at that time is $40?

Reference no: EM133073497

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