Anon-dividend-paying stockis currently selling for $50, and the risk-free rate of interest is 8% 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.

a. What is the forward price(sample answer: $25.45)

b. Whatis the initial value of the forward contract?(sample answer: $25.45)

c.Three months later, the price of the stock is $48 and the risk-free rate is still 8% per annum. What is the forward price now?(sample answer: $25.45)What is the value of the short position in the forward contract?(sample answer: $25.45 or -$25.45)