Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / A company share has a spot price of 200p today and an "over the counter" Forward Contract is to be arranged for the purchase of the company share in 1 year’s time

A company share has a spot price of 200p today and an "over the counter" Forward Contract is to be arranged for the purchase of the company share in 1 year’s time

Finance

A company share has a spot price of 200p today and an "over the counter" Forward Contract is to be arranged for the purchase of the company share in 1 year’s time.

Assuming that the applicable rate of interest is 5%, inflation is currently 2.5% and that there is an anticipated dividend of 3p payable within the next year, what would be the likely Forward price of the company share?

Option 1

Low Cost Option
Download this past answer in few clicks

2.91 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE