A stock is expected to pay a dividend of $2 per share in two months and $1 in five months. The stock price is $50, and the risk-free rate of interest is 6% per annum with continuous compounding for all maturities. An investor has just taken a short position in a six-month forward contract on the stock. Three months later, the price of the stock is $42 and the risk-free rate of interest is still 6% per annum. What is the value of the short position in the forward contract? Select one:

a. $7.7356

b. $10.944

c. $40.624

d. $12.000