Calculate the fair delivery price for the forward contract. A forward contract to deliver 1,000 TST shares in nine month's time. TST is currently trading at $10 and is expected to pay a dividend of $0.90 in exactly five month's time.
Calculate the fair delivery price for the forward contract. A forward contract to deliver 1,000 TST shares in nine month's time. TST is currently trading at $10 and is expected to pay a dividend of $0.90 in exactly five month's time.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Calculate the fair delivery price for the forward contract.
A forward contract to deliver 1,000 TST shares in nine month's time. TST is currently trading at $10 and is expected to pay a dividend of $0.90 in exactly five month's time. The risk-free rate of interest is 6% p.a
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