Use 4 decimal points

5. A stock pays a dividend of $1.25 per share in 2 months and in 5 months. The stock price is So = 60. The annual and continuously compounded risk-free rate is r = .06. Assume that the investor has sold short a 6 month forward contract on the stock. (a) Find the forward price. (6) Three months later, the price of the stock is 55 while the risk-free rate is still r = .06, find the forward price at that time. Find the value of the short position in the forward contract