$.$ Suppose XYZ stock costs $$50$ today and is expected to pay quarterly dividend of $$1$ with

the first coming in $3$ months from today and the last just prior to the delivery of the stock.

Suppose that the annual continuously compounded risk$-$free rate is $6\%.$ What is the price of a

prepaid forward contract that expires $1$ year from today, immediately after the fourth$-$quarter

dividend? Answer: $$46\mathrm{.}15$