Question 7 A stock's current price is 209 and it has declared dividends of $0.8/share each to...

Question 7

A stock's current price is 209 and it has declared dividends of $0.8/share each to be paid in 38 days, 158 days, and 278 days from now. You are purchasing a 300-day forward contract. (Assume that the risk free rate is 2%.)

What is the value of this forward contract 200 days after initiation, if the stock's price at that time is 205?

Expert Solution

jeff jeffy answered 11 months ago

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