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What is the three-year forward price

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Reference no: EM132990564

Question - The spot price of an investment asset is $33.6 and the risk-free rate for all maturities is 8.7% with continuous compounding. The asset provides an income of $2 at the end of the first year and at the end of the second year. What is the three-year forward price?

a. $47.78

b. $25.97

c. None of the other answers is correct

d. $23.17

e. $39.06

Reference no: EM132990564

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