Suppose that the continuous dividend yield of the stock of JKL is q = 3% per annum. At the beginning of January 2021, the stock is traded at $100. The continuously-compounded risk-free rate is rc= 6% per annum.

(1) You want to enter a long position of forward contract at the beginning of January 2021 with one-year maturity. What's the implicit forward price for the contract?

(2) What is the value of a short position in the forward contract from (1) if JKL stock price is $80 at the beginning of July 2021? Create a replication portfolio to justify your result.