Answer: $50.50.

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.

Author: LeetQuiz Editorial Team