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What is the initial value of this forward contract
Course:- Financial Management
Reference No.:- EM131448237





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A stock is expected to pay a dividend of $1 per share in two months and again in five months. The stock price is $50 and the risk-free rate is 1% for all times. An investor has taken a short position in a six-month forward contract on the stock. What is the forward price? What is the initial value of this forward contract?




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