What is the no-arbitrage forward price of a 120-day forward on a company now trading at $32.5 with a dividend of $0.50 in 20 days, $0.50 in 90 days, and $0.67 in 190 days, if the yield curve is flat, and the annual risk-free rate is 5.38%? $32.5 $32.0554 $31.50785 $0.99215

What is the no-arbitrage forward price of a 120-day forward on a company now trading at $32.5 with a dividend of $0.50 in 20 days, $0.50 in 90 days, and $0.67 in 190 days, if the yield curve is flat, and the annual risk-free rate is 5.38%? $32.5 $32.0554 $31.50785 $0.99215

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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