2. 10 POINTS A stock pays a dividend of $2 per share in 1 month and in 4 months. The stock price is So = $40. The annual and continuously compounded risk-free rate is r = .06. Assume that the investor has sold short a 5 month forward contract on the stock. (a) Find the forward price. (b) Three months later, the price of the stock is $35 while the risk-free rate is still r = .06, find the forward price at that time. Find the value of the short position in the forward contract