Suppose the stock price is $ 60 and the continously compounded interest rate is 10 %.
a) What is the price of a 8 - month forward price, assuming dividends are zero?
$
?
b) If the 8 - month forward price is $ 60.5, what is the annualized forward premium?
% ?
c) If the 8 - month forward price is $ 60.5, what is the annualized continous dividend yield?
% ?
You can earn partial credit on this problem.