ASM 9th edition 22.14

When calculating the forward price for S(0.25)^2 why do they use the volatility value of 0.32 but then switch to 0.64=(2)(0.23) when using the Black Scholes formula later in the problem? Wouldn’t it make sense to use the value of 0.64 the whole way through the problem? I don't understand the inconsistency...



The same thing occurs in problem 22.13 so it might be useful to check that one as well...



Thanks!

ASM 9th edition 22.14