3. Value for Forward Contracts (15 points) A stock will for sure pay a dividend of $2 per share in two months and in five months. The stock price is $100, and the risk-free rate is 4% per annum. You have just taken a long position in a 6 -month forward contract on the stock. (a) (5 points) What are the no-arbitrage forward price and the corresponding initial value of the forward contract to you today? (b) (5 points) Three months later, the price of the stock is $90 and the risk-free rate is still 4% per annum. What is the no-arbitrage forward price? 2 (c) (5 points) Based on the information of (b), what would be the value of the forward contract to you and your counterparty respectively at that time