Question: Problem 3 (4 points): A $50 stock pays an 8% continuous dividend. The continuously compounded risk-free rate is 6%. 1. What is the price of

Problem 3 (4 points): A $50 stock pays an 8% continuous

Problem 3 (4 points): A $50 stock pays an 8% continuous dividend. The continuously compounded risk-free rate is 6%. 1. What is the price of a prepaid forward contract that expires 1 year from today? 2. What is the price of a forward contract that expires at the same time

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