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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?

A. Increase in price
B. Decrease in price
C. No impact

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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® 2025 Level I Curriculum, Volume 5, Module 4.