A Stock Has a Current Price of $20

question 17

Multiple Choice

A stock has a current price of $20.The risk-free interest rate for a half-year maturity is 6% and the dividend rate is 3%.Assume continuous compounding.What is the six-month forward price of the stock?

• A)$20.30
• B)$20.61
• C)$20.92
• D)$21.24

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