The correct answer is B because the forward price is calculated using the formula:

$F_0(T) = S_0 e^{(r - q)T}$

where:

• $S_0$ is the spot price ($50),
• $r$ is the risk-free rate (5%),
• $q$ is the dividend yield (3%),
• $T$ is the time period (0.5 years).

Substituting the values:

$F_0(T) = 50 e^{(0.05 - 0.03) \times 0.5} = 50 e^{0.01} \approx 50.50$

Option A is incorrect because it reverses the risk-free rate and dividend yield in the calculation. Option C is incorrect because it excludes the dividend yield from the calculation.