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A stock is currently priced at 5 0 and pays 0 . 5 dollar quarterly dividends, with the first coming 1 month from today. The

A stock is currently priced at 50 and pays 0.5 dollar quarterly dividends, with the first coming 1 month from today. The current time point is t =0 and the continuously compounded risk-free interest rate is 6%. For simplicity, take 1 month as 1/12 years.
Based on the above information, answer questions 1 and 2.
1. Find the price of the forward that delivers 1 share of the stock at time T =0.8.
A.50.15
B.50.92
C.51.69
D.52.46
E. None of the above is close
2. Assuming So3=48. Find the time t =0.3 price of a prepaid forward that delivers 1 share of the stock at time T =0.8.
A.47.01
B.47.48
C.47.96
D.48.44
E. None of the above is close

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