Answer:
present value = $1.9539 
forward price f1 = $50 
present value = $0.9867 
forward price f2 = $47.96 
value of short position = $2 
Explanation:
given data 
pay a dividend = $1 per share 
time = 2 months 
time = 5 months 
stock price = $50
rate of interest = 8%
solution
we get here present value that is 
present value = principal ×  
 
so 
present value =  $1 ×  + $1
 + $1  
   
present value = $1.9539 
and 
forward price will be 
forward price = ( stock price - present value ) ×  
 
forward price = ( 50 - 1.9539 ) ×  
 
forward price f1 = $50 
and 
now we get present value of future dividend that is 
present value = $1 ×  
 
present value = $0.9867 
and 
forward price is now as
forward price = ( $48 - 0.9867 ) ×  
 
forward price f2 = $47.96 
and 
value of short position is  = ( f1 - f2)  ×  
 
value of short position = ( 50 - 47.96 )  × 
value of short position = $2