Find the forward price for an agreement to deliver

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Reference no: EM131820079

1. A stock pays quarterly dividends of 0.20. Its current price is 50, and it has just paid a dividend. The continuously compounded risk-free interest rate is 5%. Find the forward price for an agreement to deliver 100 shares of the stock 6 months from now.

2. Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and a face value of $1,000?

Reference no: EM131820079

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