Q.4 This question consists of three parts A, B & C. (20 marks) (A) A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $60 and the risk-free rate of interest is 8% per annum with continuous compounding. What is the forward price of the forward contract? (6 marks) (B) In February you short selling 100 shares for $110 per share and close out the short position three months later when the price is $100 to replace the browed shares. During the three months a dividend of $2 per share is paid. What would be your loss/profit if you had bought these 100 shares? (8 marks) se 100 shares? (C) Consider a one-year futures contract on gold. We assume no income and that it costs $2 per ounce per year to store gold, with the payment being made at the end of the year. The spot price is $1,600 and the risk-free rate is 5% per annum for all maturities. What is the price of this forward contract? (6 marks)