Multiple Choice
A stock has a current price of $20. The risk-free interest rate for a half-year maturity is 6% and the dividend rate is 3%. Assume continuous compounding. What is the six-month forward price of the stock?
A) $20.30
B) $20.61
C) $20.92
D) $21.24
Correct Answer:
Verified
Correct Answer:
Verified
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