A $50 stock pays a $1 dividend every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 6%. a. What is the price of a prepaid forward contract...

A $50 stock pays a $1 dividend every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 6%.

a. What is the price of a prepaid forward contract that expires 1 year from today, immediately after the fourth-quarter dividend?

b. What is the price of a forward contract that expires at the same time?