BUG's stock price S is $50 today. It pays a dividend of $0.25 after two months and $0.30 after five months. The continuously compounded interest rate is 1.17 percent per year. If the four-month forward price is $51.13, the arbitrage profit that you can make today by trading one forward contract and other securities is: [round to two decimal places)

BUG's stock price S is $50 today. It pays a dividend of $0.25 after two months and $0.30 after five months. The continuously compounded interest rate is 1.17 percent per year. If the four-month forward price is $51.13, the arbitrage profit that you can make today by trading one forward contract and other securities is: [round to two decimal places)

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...

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