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What is the price of a prepaid forward contract

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Reference no: EM133275374

The S&P 500 Index is priced at $985.46 today. The annualized dividend yield on the index is 2.95%. The continuously compounded annual interest rate is 6.45%.

a. What is the price of a forward contract that expires 9 months from today?

b. What is the price of a prepaid forward contract that expires 9 months from today?

Reference no: EM133275374

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