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Samantha has just taken a short position in a 15-month forward contract on a stock. The stock price is $126 and the risk-free rate for

Samantha has just taken a short position in a 15-month forward contract on a stock. The stock price is $126 and the risk-free rate for all maturities is 4.5% with continuous compounding. The stock is expected to pay a dividend of $4.8 per share in five months and $6.2 per share in 11 months. What is the forward price? Do not round intermediate calculations.

A.

$122

B.

$109

C.

$120

D.

$128

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