Only PT 2 & 3 thanks

Problem 7 Intro You anticipate the receipt of money in 170 days, which you will use to purchase stocks in a particular company. The stock is currently selling for $51 and will pay a $0.5 dividend in 50 days and another $0.6 in 140 days. The risk-free rate is 8% (with continuous compounding) for all maturities. You go long a forward contract on the stock. Part 1 - Attempt 1/10 for 10 pts. At what price would you be willing to buy the stock in 170 days through a forward contract? 75 Correct Days from now Years from now Cash flow/value 0 0 51 50 0.137 0.5 140 0.3836 0.6 170 0.4658 ST - F. Present value of dividends: n I= Dzert: i=1 = 0.5e -0.08-0.137 + 0.6 -0.08-0.3836 = 1.076 Forward price: Fo = (S I)ent = = (51 1.076)20.08 - 0.4658 = 51.82 Part 2 | Attempt 4/10 for 6 pts. Suppose you agree to the contract at the price you found in the previous part. 100 days later, the stock has fallen to $46.14. What is the value of the forward contract? 1+ decimals Submit Part 3 | Attempt 1/10 for 10 pts. What is the new forward price? 1+ decimals Submit