Three months ago, an investor took a long position of a forward contract that expires in six months. The forward contract was priced at $50, with a quarterly dividend of $3, and a semi-annual cost of $4. The risk-free interest rate is 3%. Now the underlying price is $48, what is the value of this forward contract?
A. -$0.6392
B. $0.6022
C. -$1.0459
V t ( T ) = −( S t P V t +( I ) P V t ( − C ) F 0 ( T + ) ( 1 r ) − ( T − t ) )