Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

A $68 stock pays a dividend of $1.50 every 6 months, with the first dividend coming 6 months from today. The continuously compounded risk-free rate is 4%. What is the price of a prepaid forward contract that expires 1 year from today, immediately after the second dividend?
A. $64.65
B. $66.56
C. $65.09
D. $67.74
E. $65.00

Sagot :

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.