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BUG's Stock Price S Is $50 Today

Question 18

Multiple Choice

BUG's stock price S is $50 today.It pays a dividend of $0.25 after two months.If the continuously compounded interest rate is 4 percent per year,then the six-month forward price on BUG stock is:


A) $49.75
B) $50
C) $50.45
D) $50.76
E) None of these answers are correct.

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