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What would be the fair value of the forward contract

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Question - Consider a 10-month forward contract on a stock when the stock price is Rs.50. We assume that the risk-free rate of interest is 8% p.a. for all maturities. We also assume that dividend of Rs.0.75 per share is expected after 3 months. What would be the fair value of the forward contract?

Reference no: EM133040133

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