medium · Quantitative Finance
A stock trades at S_0 = 4000 with a risk-free rate of r = 5% and a continuous dividend yield of q = 2%.
What is the fair no-arbitrage price for a six-month (T = 0.5) forward contract?
- 3940.45
- 4000.00
- 4141.61
- 4060.45
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