What are the forward price, Other Management

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What are the forward price

Problem: A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $40 and the risk- free rate of interest is 5% per annum with continuous compounding.

i. What are the forward price and the initial value of the forward contract?

ii. Six months later, the price of the stock is $45 and the risk-free interest rate is still 5%. What are the forward price and the value of the forward contract?

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