1. A stock is expected to pay a dividend of $1 per share in two months and in five months. The stock price is $100, and the risk-free rate of interest is 8% per annum with continuous compounding for all maturities. An investor has just taken a short position in a six-month forward contract on the stock. a) What are the forward price and the initial value of the forward contract? b) Three months later, the price of the stock is $48 and the risk-free rate of interest is still 8% per annum. What is the value of the short position in the forward contract? What is the forward price of a new contract maturing in three months