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please show all work for both parts 50 points Save An investor has just taken a short position in a one-year forward contract on a

please show all work for both parts
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50 points Save An investor has just taken a short position in a one-year forward contract on a dividend paying stock. The stocks expected to pay a dividend of 2 por share in five months and In eleven months. The stock price is currently selling for $100 and the risk-free rate of interest is 8.50% per year with continuous compounding for all matunities a. What are the forward price and the initial value of the forward contract? The forward prcola (sample answer: 575,50) and the initial value is (sample answer: $75.50) b. Six months later, the price of the stock is 5105 and the risk-free rate stays the same. What are the forward price and the value of the position in the forward contract? Now the forward price is (sample answer $7550) and the portion value is (sample answer $5.50.or-55 50)

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