hard · FRM Part 1

A stock currently trades at 100. Over the next year, it is expected to pay a dividend of2.00 in six months. The risk-free rate is 6% per annum (continuously compounded).

What is the $1-year forward price of the stock?

  1. 103.88
  2. 106.18
  3. 104.12
  4. 102.12

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