Stock A is expected to pay a $1 dividend after 2 month and a $2 dividend after 5 months. The stock price is now priced at $30, the continuous compounded risk-free rate for all maturities is 8%. An investor has just entered into a short position in a 6-month forward contract of the stock. Based on the information above, what is the reasonable price of this stock forward contract?
Stock A is expected to pay a $1 dividend after 2 month and a $2 dividend after 5 months. The stock price is now priced at $30, the continuous compounded risk-free rate for all maturities is 8%. An investor has just entered into a short position in a 6-month forward contract of the stock. Based on the information above, what is the reasonable price of this stock forward contract? A.USD 28.19; B.USD 29.34; C.USD 29.98; D.USD 30.41