Stock “ABC” is expected to pay a dividend of $1.5 per share in 1 month and a dividend of $2.5 per share in 3 months. The current price of stock “ABC” is $27.0 per share, and the risk-free rate of interest is 6% per annum with continuous compounding. Calculate the fair price of a 2-year forward contract on stock “ABC”.

The manager of the quick stop corner convenience store (which never closes) sells four cases of stein beer each day. order costs are $8.00 per order, and stein beer costs $.80 per six-pack (each case of stein beer contains four six-packs). orders arrive three days from the time they are placed. daily holding costs are equal to 5 percent of the cost of the beer. if he were to order 16 cases of stein beer at a time, what would be the average inventory level? a. 0.25 days b. 3 days c. 1 day d. 4 days e. 20 days