Stock B Is Trading at $1100

question 5

Multiple Choice

Stock B is trading at $1100.The risk-free rate is 1% for all maturities and the average dividend on the stock is $10 each quarter-end.What is the six-month forward price of the stock,assuming interest calculations are on a continuously-compounded basis?

• A)$1,050.65
• B)$1,085.49
• C)$1,105.51
• D)$1,125.54

Examine the role of government programs in affecting market prices and distribution of economic welfare.

Understand the concepts of tax incidence and how it affects market outcomes.

Analyze factors determining the actual benefit of government subsidies.

Evaluate the effects of market interventions, such as price controls, on supply and demand and overall economic welfare.

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Definitions:

Gustation

The sense of taste, one of the five traditional senses, involving the detection of flavor, especially in the mouth.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Baritone

A male singing voice between bass and tenor, with a rich, deep vocal range.

Hertz

A unit of frequency in the International System of Units (SI), representing one cycle per second.