41 Question 2 42 You just entered into a 1-year forward contract to buy the stock of Brandex, a company that 43 pays no dividend. The risk free rate is 4.00% per year. The stock now sells at $290.00 per share. 15 points 45 a. What should the forward price be today? 46 47 Forvard price today (to nearest cen) 301.60 You' re so smart! 301. 60You' re so smart! 48 49 b. 3 months later, the stock price drops by 2.00%. What is the forward price then? 50 51 52 53 c. What is the value of the forward contract then? 54 55 Value of contract in 3 months' time (to nearest cent) 56 57 Forward price 3 months later (to nearest cent) 295. 57