Forward Price Calculation for Equity Forwards

Analyzing the forward pricing and valuation of equity forwards is crucial for understanding how to value such contracts. Suppose two investors agree on a forward contract for 100 shares of Company XYZ, with the current price of the shares at $50 each and a forward price set to $55. If the risk-free rate of return is 5%, calculate the actual forward price expected at the expiration of the contract after one year.

Given that cash dividends are expected to be paid at a rate of $2 per share over the year, which option reflects the correctly calculated forward price?