12.

Q12 An investor entered into a 1-year forward contract on January 1, when the price of the stock was 75. You are given: The stock pays semiannual dividends of 1, with the first dividend payment occurring on June 1. The continuously compounded interest rate is 3%. On August 1, the stock price rose to 82. Calculate the value of the investor's long forward on August 1. Q12 An investor entered into a 1-year forward contract on January 1, when the price of the stock was 75. You are given: The stock pays semiannual dividends of 1, with the first dividend payment occurring on June 1. The continuously compounded interest rate is 3%. On August 1, the stock price rose to 82. Calculate the value of the investor's long forward on August 1