Question 4 (Total 18 marks) A stock is expected to pay a dividend of $3 in six months. The stock price is $90 now, and the risk-free rate of interest is 6% per annum (continuous compounding) for all maturities. An investor has just longed a 5-month forward contract for 100 shares of this stock, with no gain or loss on the forward contract today. a) What is the forward price fixed in this forward contract? Show calculations. (9 marks) b) Three months later, the price of the stock has changed to $96 and the risk-free rate of interest to 5% per annum for all maturities. What is the value of this investor's long forward contract? Show calculations. (9 marks)