Answered: Price a 1 year forward, with continuous…

Price a 1 year forward, with continuous compounding risk free rate of 5%, spot price of $1 and a dividend of $0.10 after 6 months. The price is O 0.95 1.05 0.93 O 1.75

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 2dM

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Question

Price a 1 year forward, with continuous compounding risk free rate of 5%, spot price of $1 and a dividend of $0.10 after 6 months. The price is
O 0.95
1.05
0.93
O 1.75

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