HAW,IncPlans to Pay a $1

question 8

Multiple Choice

HAW,Inc.plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months.HAW's share price today is $45.60 and the continuously compounded quarterly interest rate is 2.1%.What is the price of a forward contract,which expires immediately after the second dividend?

• A) $45.28
• B) $45.96
• C) $45.60
• D) $46.24

---

Definitions:

Reaction Pathway

The sequence of events at the molecular level that leads to a chemical reaction, including the transition states and intermediate products.

Mechanism

The sequence of steps that makes up a chemical reaction, detailing the path from reactants to products, including intermediates and transition states.

Reaction Pathway

A series of steps that shows how reactants are converted into products in a chemical reaction.

Mechanism

The step-by-step sequence of elementary reactions by which overall chemical change occurs in a chemical reaction.