A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is AUD 40 and the risk-free rate of interest is 10% pa with continuous compounding. (a) What are the forward price and the initial value of the contract? (b) Six months later, the price of the stock is AUD 45 and the risk-free interest rate is still 10%. What are the forward price and value of the forward contract?