What is the no-arbitrage forward price for delivery

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The S&R index spot price is $1100, the risk-free rate is 5%, and the continuous dividend yield on the index is 2%.

a) What is the no-arbitrage forward price for delivery in 6 months?

b) Find the price of a prepaid forward contract for deliver in 6 months.

c) Find the annualized forward premium or discount.

Reference no: EM131543416

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