5. a) A stock index currently stands at 2100. The risk-free interest rate is 3.5% per annum (with continuous compounding) and the dividend yield in the index is 1.75%. What should the futures price be for a six month contract? b) A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $65 and the risk-free rate of interest is 4% per annum with continuous compounding. i) What are the forward price and the initial value of the forward contract? ii) three months later, the price of the stock is $67 and the risk-free interest rate 4.2%. What are the forward price and the value of the forward contract?