Price of a One Year Forward Contract on Stock MCQ
$2.00$1.001197 reads
Question
XYZ stock is priced at $100. The continuously compounded dividend yield on the stock is 3%. The continuously compounded interest rate is 5%. Which is closest to the price of a 12-month forward contract on XYZ stock?
(a) $99
(b) $100
(c) $101
(d) $102
(e) $103
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