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A $50 each pays $1 dividend every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 6%.

A $50 each pays $1 dividend every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 6%. a. What is the price of a prepaid forward contract that expires 1 year from today, immediately after the fourth-quarter dividend? b. What is the price of a forward contract that expires at the same time?

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