Company X entered into a six-month short forward agreement on a stock at T=0. The stock price was $55 and it was expected to pay a dividend of $2 per share in two months and in five months. The risk-free rate of interest was 15% per annum with continuous compounding for all maturities. 3 months later, the price of the stock became $42 and the risk-free rate of interest became 13% per annum with continuous compounding for all maturities. The price stock was at $58 when the forward matured.

Q1) Calculate the value of the Company Xs forward contract as at T=0. (Use for loss.)

Q2) Calculate the new forward price at T=3 months

Q3) Calculate the value of the Company Xs forward contract as at T=3 months. (Use for loss)

Q4) Calculate the value of the Company Xs forward contract at maturity. (Use for loss.)