Stock B Is Trading at $1100

question 3

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:

Stanley Cup

The championship trophy awarded annually to the National Hockey League (NHL) playoff winner.

Collective Effervescence

A concept in sociology describing the sense of energy and harmony people feel when they come together in a group for a shared purpose.

Collective Conscience

a term coined by Emile Durkheim to describe the set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society.

Conflict Theorists

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