HAW, Inc. plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. HAW's share price today is $45.60 and the continuously compounded quarterly interest rate is 2.1%. What is the price of a forward contract, which expires immediately after the second dividend?
(a) $45.28
(b) $45.96
(c) $45.60
(d) $46.24
Answer: a
Fin 402
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