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

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Definitions:

Voyeurism

A psychological disorder characterized by gaining sexual pleasure from observing unsuspecting individuals who are naked, in the process of disrobing, or engaging in sexual activities.

Frotteurism

A paraphilic disorder characterized by an intense sexual interest in touching or rubbing against a non-consenting person, often in crowded places.

Adolescence

A developmental phase following childhood, marked by physical, psychological, and social changes leading to adult maturity.

Exhibitionist

A person who behaves in ways intended to attract attention or display themselves.