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Basic Question 7 of 9
What will be the most likely impact on the forward price of a stock if the company announces a dividend during the contract whose ex-dividend would fall after the expiration date of the contract?
B. Decrease in price
C. No impact
A. Increase in price
B. Decrease in price
C. No impact
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Learning Outcome Statements
explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset
CFA® 2024 Level I Curriculum, Volume 5, Module 4.