Find the prepaid forward price and the forward price

Reference no: EM13289582

Find the prepaid forward price and the forward price of a 30 month forward contract for a stock currently priced at $36, assuming that the risk free rate is 4% compounded continuously and that dividends are paid at continuous annual rate of 2.5%.

Reference no: EM13289582

Questions Cloud

Find the two minimum thicknesses : White light is incident normally on a thin soap film ( = 1.33) suspended in air. What are the two minimum thicknesses that will constructively reflect yellow ( = 577 ) light? Enter your answers in ascending order separated by a comma

Calculate m assuming the area of the coil : A 60-turn coil carries a current of 2A and lies in the plane x + 2y- 5z = 12 such that the magnetic moment m of the coil is directed away from the origin. Calculate m, assuming that the area of the coil is 8cm2.

Calculate the fair price of a 6 month forward contract : The current price of a share of stock is 5, and the stock is expected to pay a dividend of 1 per share in 2 months and again in 5 months. The risk free annual effective rate of interest is 6%.

Define sodium sulfate added to the organic solution : why is anhydrous sodium sulfate added to the organic solution remaining after the extractions with 6 M HCL and 6 M NaOH

Find the prepaid forward price and the forward price : Find the prepaid forward price and the forward price of a 30 month forward contract for a stock currently priced at $36, assuming that the risk free rate is 4% compounded continuously and that dividends are paid at continuous annual rate of 2.5%.

What is the total issue size necessary to yield : If a banker's spread is 6.5% of the total issue size, with $60,000 out-of-pocket exp, what is the total issue size necessary to yield 10 million in cash? Use formula.

Determine the indicated temperature of the instrument : A platinum RTD with α = 0.0039 is used with an instrument designed for α = 0.0037. Determine the indicated temperature of the instrument when the actual temperature is 99ºC.

Define isoelectric point : To help you explain your answer, look up the meaning of "isoelectric point" and discuss the effect that pH will have on the structure of your product.

Revenue expenditures and capital expenditures : Write a 500- to 800-word summary explaining the differences between revenue expenditures and capital expenditures during a useful life and identifying any similari

User Account

All Pages