In a simple cost-of-carry model with dollar dividends,we:

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In a simple cost-of-carry model with dollar dividends, the stock price is lowered by the present value of all future dividends paid over the forward's life. This is because investors can earn a return on the dividends they receive by investing them elsewhere, so the stock price must be adjusted to reflect the expected value of those future dividend payments. This adjustment is made for the life of the forward contract, as that is the period during which the investor is obligated to hold the stock.

In a Simple Cost-Of-Carry Model with Dollar Dividends,we