2. A stock pays no dividends. The stock price is $2.03, and the risk-free rate of interest is 7.0% per annum with continuous compounding. 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 con- tract? b) Three months later, the price of the stock is $48 and the risk-free rate of interest is still 7.0% per annum. What are the forward price and the value of the short position in the forward contract? c) Assuming everything else is equal how does this change if the risk free rate of interest is 0.1% per annum