Suppose an investment asset has a spot price of K275 and it is due to pay a fixed dividend of K22 in three months’ time. The asset costs 1.5% per annum to store. Three-month (exactly 0.25 year) interest rates are 6.58% and six-month (0.5 year) interest rates are 7%. What is the fair six-month forward price for the asset? Input your answer to two decimal places.
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