Solution
= Solution
Setting $f=0$ in <1/b> gives
$$
\boxed{V(S,t)=S e^{-D(T-t)}}.
$$
This is a <prepaid forward contract>: the holder pays now and receives one share at $T$, with no interim dividend payments. Buying $e^{-D(T-t)}$ shares now and reinvesting their <continuous dividend yield> grows the shareholding to one at expiry. Thus the displayed initial cost replicates the terminal delivery. When $D=0$, holding one share already does so and $V=S$.