SOLUTION: The share price of a stock is $95. The stock will pay an annual dividend of $7 in the following 3 years. The first dividend will be paid one year from now. The continuous compoundi

Algebra ->  Finance -> SOLUTION: The share price of a stock is $95. The stock will pay an annual dividend of $7 in the following 3 years. The first dividend will be paid one year from now. The continuous compoundi      Log On


   

Question 1191923: The share price of a stock is $95. The stock will pay an annual dividend of $7 in the following 3 years. The first dividend will be paid one year from now. The continuous compounding interest rate %, determine the forward price of the forward contract that matures in 3 years. Round your answer to the nearest dollar.
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
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The share price of a stock is $95. The stock will pay an annual dividend of $7 in the following 3 years.
The first dividend will be paid one year from now. The continuous compounding interest rate %,
determine the forward price of the forward contract that matures in 3 years. Round your answer to the nearest dollar.
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