Question: 1.A forward contract for 4 months is entered into when a stock index is at 1000.If the risk free interest rate is 3% per year

1.A forward contract for 4 months is entered into when a stock index is at 1000.If the risk free interest rate is 3% per year (with continuous compounding) and the dividend yield on the index is 2% per year, what is the futures price?After 1 month the index price is 980, what is the value of the futures agreement assuming the risk free rate with continuous compounding is now 5% (but the original dividend rate remains 2%) and the contract price is equal to $50 times the index value?

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