A one year forward contract on a non-dividend paying stock is entered into when the stock price is $40. The risk-free interest rate is 15%. (a) What is the forward price and the value of the forward contract at initial time? [5] (b) Six months later, the price of the stock is $50. What is now the forward price and the value of the forward contract? [6] Recall that 'forward price' is what we have also called 'fair strike price' during the course