Multiple Choice
Stock B is trading at $1100. The risk-free rate is 1% for all maturities and the average dividend on the stock is $10 each quarter-end. What is the six-month forward price of the stock, assuming interest calculations are on a continuously-compounded basis?
A) $1,050.65
B) $1,085.49
C) $1,105.51
D) $1,125.54
Correct Answer:
Verified
Correct Answer:
Verified
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