Three months ago, an investor entered into a six-month forward contract to sell a stock. The delivery price agreed to was $55. Today, the stock is trading at $45. Suppose the three-month interest rate is 4.80% in continuously compounded terms.

1. (a)Assuming the stock is not expected to pay dividends over the next three months, what is the current forward price of the stock?
2. (b)What is the value of the contract held by the investor?
3. (c)Suppose the stock is expected to pay a dividend of $2 in one month, and the one- month rate of interest is 4.70%. What are the current forward price and the value of the contract held by the investor?