You **bought** a **1.5** year (18 month) futures contract on oil. Oil storage costs are **4**% pa continuously compounded and oil pays no dividends. The futures contract is entered into when the oil price is $**40** per barrel and the risk-free rate of interest is **10**% per annum with continuous compounding.

Which of the following statements is **NOT** correct?

A stock is expected to pay its semi-annual dividend of $1 per share for the foreseeable future. The current stock price is $**40** and the continuously compounded risk free rate is **3**% pa for all maturities. An investor has just taken a **long** position in a **12**-month futures contract on the stock. The last dividend payment was exactly 4 months ago. Therefore the next $**1** dividend is in **2** months, and the $**1** dividend after is **8** months from now. Which of the following statements about this scenario is **NOT** correct?