A $ 60 stock pays $ 3.5 every 3 months, with the first dividend coming 3 months from today. The continously compounded risk-free rate is 3 %.

a) What is the price of a prepaid forward contract that expires 1 year from today, immediately after the fourth-quarter dividend?
$ ?
b) What is the price of a forward contract that expires at the same time?
$ ?

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