A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $38 and the risk-free rate of interest is 8% per annum with continuous compounding. a) What are the forward price and the initial value of the forward contract? b) Six months later, the price of the stock is $46 and the risk-free interest rate is still 8%. What are the forward price and the value of the forward contract? Explain.