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Derive the forward price of the stock for delivery

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ABC stock has a share price of $150 today. All rates of interest are 3% per annum on a continuously compounded basis. A one-year European call option on one share of stock struck at $147 is worth $15. Finally, ABC is scheduled to pay the following dividends per share over the next year: a dividend of $3.0 per share in three months and a dividend of $3.0 per share in nine months.

a) Derive the forward price of the stock for delivery in one year.

b) What is the value of an otherwise identical European put option?

Reference no: EM131321442

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