7.A 1-year forward contract on a non-dividend paying stock is entered into when the stock is $50 and the risk-free rate is 6% p.a.

a)What is the value of the short position six months later when the stock is $30 and the risk-free rate is 7% p.a.? The long position?

b)What is the value of the contract at maturity when the stock is $100?

c)What are the answers to a) and b) if the stock pays $1 dividend in 3 and 9 months?