For part a)

I believe I'm solving Vk(t,T) = St - K*e^-(r*t) where St is current price of asset, K = delivery price, e is Euler's constant. 30-(25/(e^(.03*2))) = 6.46 ; Would I even use this formula since I am compounding annually, not continuously?

OR I might be solving for F(t,T) = St/ z (t,T) = 35/e^-(.03*2) = 37.16

For part b)

ST = 35; so the value of the long counterparty would be ST - whatever long party originally paid for the forward.

This would be 35 - answer from part a

Thanks

Exercise 5 (Each part 1 mark). The current price of a certain stock paying no income is 30. Assume the annually compounded zero rate will be 3% for the next 2 years. (a) Find the current value of a forward contract on the stock if the delivery price is 25 and maturity is in 2 years (b) If the stock has price 35 at maturity, find the value of the forward from part (a) to the long counterparty at maturity