A stock is expected to pay a dividend of $0.85 per share in one month and again in four months. The stock price is $100, and the risk-free rate of interest is 4% per annum with semi-annual compounding for all maturities. An investor has just taken a short position in a six-month forward contract on the stock. a) What are the forward price and the initial value of the forward contract? b) Two months later, the price of the stock is $96 and the risk-free rate of interest is still 4% per annum. What are the forward price and the value of the short position in the forward contract?