Intel stock is trading at $100 per share. The yield curve is flat at 4% (semi-annually compounded APR). The market assumes that Intel will not pay any dividend within the year.

(a) What must be the forward price to purchase one share of Intel stock in one year?

(b) Suppose Intel suddenly announces a dividend of $2 per share in exactly 6 months, and assume that the Intel stock price does not change upon the announcement. What is the new one-year forward price for Intel? (deliverable does not include dividends paid over the life of the contract)