uppose intel suddenly announces a dividend of $5 per share in exactly 6 months, and assume that the intel stock price does not change upon the announcement. what is the new one-year forward price for intel? (deliverable does not include dividends paid over the life of the contract)

Respuesta :

The new one-year forward price for Intel would remain the same at $50 per share, as the dividend of $5 per share is paid in 6 months and the forward price does not include dividends paid over the life of the contract.

What is price?

Price is the monetary value associated with a good or service. It is the amount of money a customer must pay to acquire the good or service they desire. Pricing is an important decision that businesses make in order to remain profitable and competitive. It is determined by a variety of factors, including supply and demand, competition, costs of production, and desired profit margins. Businesses must consider these elements carefully when deciding an appropriate price for their products and services in order to maximize their profits.

The forward price is the price at which the underlying asset will be exchanged at the expiration of the contract, and the dividend payment does not affect this price.

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