A stock is expected to pay a dividend of 2 per share in 9 months. The stock price is 20, and the risk-free rate of interest is 5% per annum with continuous compounding for all maturities. An investor has just taken a long position in a 12-month forward contract on the stock. What is the Forward price (K)?

Select one:

a. 20

b. 16

c. 18

d. 17

e. 19