4. Three months ago, an investor entered into a 6-month forward contract to buy 10,000 shares of Cerevel Therapeutics (Ticker: CERE). The delivery price agreed to was $20/share. Today the stock closed at $22.59 share. Suppose the 3-month interest rate is 5% per year continuously compounded. a) Assuming the stock is not expected to pay any dividends over the next 3 months, what is the current forward price of the stock? b) What is the value of a long contract with forward price equal to the price you estimated in (a), and expiring in T-3 months? c) What is the value of the long contract held by the investor?

4. Three months ago, an investor entered into a 6-month forward contract to buy 10,000 shares of Cerevel Therapeutics (Ticker. CERE). The delivery price agreed to was $20/ share. Today the stock closed at $22.59 share. Suppose the 3 -month interest rate is 5% per year continuously compounded. a) Assuming the stock is not expected to pay any dividends over the next 3 months, what is the current forward price of the stock? b) What is the value of a long contract with forward price equal to the price you estimated in (a), and expiring in T3 months? c) What is the value of the long contract held by the investor