What is the new forward price


Problem

A one-year forward contract on a non-dividend-paying stock is entered into when the stock price is $50 and the risk-free rate of interest is 2.5% per annum with continuous compounding. Six months later, the price of the stock is $41.9 and the risk-free interest rate is still 2.5%. What is the new forward price?

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Financial Management: What is the new forward price
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