A $68 stock pays a dividend of $1.50 every 6 months, with the first dividend coming 6 months from today. The continuously compounded risk-free rate is 4%. What is the price of a prepaid forward contract that expires 1 year from today, immediately after the second dividend?
A. $64.65
B. $66.56
C. $65.09
D. $67.74
E. $65.00



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