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Consider an eight-month forward contract...

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题目

Consider an eight-month forward contract on a stock with a price of $98/share. The delivery date is eight months hence. The firm is expected to pay a $1.80/share dividend in four months time. Riskless zero coupon interest rates (continuously compounded) for different maturities are as follows: 4 months 4%, 8 months 4.5%. The theoretical forward price (to the nearest cent) is:

选项

A.99.15

B.99.18

C.100.98

D.96.20

答案

A

解析

The solution is as follows:
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