1. Equity Forward Valuation, assume we bought a one-year forward contract at 49 and there are now three months to expiration. The underlying stock is currently trading at 60 and the interest rate is 4% on an annual compounding basis.

1. Given the above information, what is the value of the existing contract?
2. A dividend is announced between today and the expiration date. Assuming there is no impact of that announcement on the stock price, what is the impact of this announcement on the forward value?
3. What is the futures value of the existing contract after marking to market?
4. Compared to the value of a forward contract, is the value of a futures contract higher or lower?