Multiple Choice
BUG's stock price S is $50 today.It pays a dividend of $0.25 after two months and $0.30 after five months.If the continuously compounded interest rate is 4 percent per year,then the forward price of a six-month forward contract on BUG is:
A) $49.75
B) $50
C) $50.46
D) $50.76
E) None of these answers are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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