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Question-1 (21 pts - 6+6+9) A 9-months forward contract on a stock is entered into...

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Question-1 (21 pts - 6+6+9) A 9-months forward contract on a stock is entered into when the stock price is $50 and the risk-free rate of interest is 10% per annum. a) What is the initial value of the forward contract? b) What is the forward price of the contract? c) Six month later, the price of the stock is $55 and the risk free rate is still 10%. What is the value of the forward contract? Assume there is no dividend

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