A stock is expected to pay a dividend of 1 per share in two, Financial Management

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A stock is expected to pay a dividend of 1 per share in two

A stock is expected to pay a dividend of $1 per share in two months and again in five months. The stock price is $50 and the risk-free rate is 1% for all times. An investor has taken a short position in a six-month forward contract on the stock. What is the forward price? What is the initial value of this forward contract?

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Financial Management: A stock is expected to pay a dividend of 1 per share in two

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Financial Management: A stock is expected to pay a dividend of 1 per share in two

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