A stock has a current price of $20. The risk-free interest rate for a half-year maturity is 6% and the dividend rate is 3%. Assume continuous compounding. What is the six-month forward price of the stock?
A) $20.30
B) $20.61
C) $20.92
D) $21.24

Question

A stock has a current price of $20. The risk-free interest rate for a half-year maturity is 6% and the dividend rate is 3%. Assume continuous compounding. What is the six-month forward price of the stock? 
A) $20.30
B) $20.61
C) $20.92
D) $21.24

Quizplus · Accepted Answer

The Answer of A stock has a current price of $20. The risk-free interest rate for a half-year maturity is 6% and the dividend rate is 3%. Assume continuous compounding. What is the six-month forward price of the stock? 
A) $20.30
B) $20.61
C) $20.92
D) $21.24

A Stock Has a Current Price of $20