What is the value of one year prepaid forward

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1. A stock is trading at 20 dollars per share. The stock pays a $.25 quarterly dividend. The annual rate of interest is 6%. What is the value of a one year prepaid forward?

2. Future value: You are planning to invest in a bank account that will pay 7.5 percent interest compounded semiannually. If you have R5,000 to invest, how much will you have at the end of four years?

3. The S&P 500 Index price is 1992.28 and its annualized dividend yield is 2.30%. LIBOR is .2%. What is the value of a prepaid forward and the forward contract? (Show your Work)

Reference no: EM131901416

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