$($b$)$ A stock is expected to pay a dividend of $$1$ per share in two months and in five months. The stock price is $$50,$ and the riskfree rate of interest is $5\%$ per annum with continuous compounding for all maturities. An investor has just taken a short position in a six$-$month futures contract on the stock. Calculate the futures price bf the stock for delivery in six months.

$($c$)$ What would the required rate of return be on common stocks if you wanted a $7\%$ risk premium, given that the real growth rate of the country is $3\%$ and the inflation rate is $2\%?$ If common stock investors became less risk averse, what would happen to the required rate of return on common stocks? What would be the impact on stock prices?