You are given the following information about Stock XYZ:

(i) The current price of the stock is 35 per share.

(ii) The expected continuously compounded rate of return is 8%.

(iii) The stock pays semi-annual dividends of 0.32 per share, with the next dividend to be paid two months from now.

The continuously compounded risk-free interest rate is 4%. 

Calculate the current one-year forward price for stock XYZ.

(A) 34.37

(B) 35.77

(C) 36.43

(D) 37.23

(E) 37.92