3. [5 marks] A one-year forward contract on a stock has a price of $150. The stock is expected to pay a dividend of $3 at two future times, six months from now and one year from now, and the annual effective risk-free interest rate is 6%. Calculate the current stock price. A) 141.50 B) 147.25 C) 151.62 D) 155.74 E) None of these 4. [5 marks] Index XYZ pays dividends continuously with yield 0.04. If the 3-month prepaid forward price on the index is the same as the 1-year forward price on the index, what is the continuously compounded risk free rate? B)3% D)6% E) None of these A) 2% C) 4%