I completed this quest by sending the court wizard to jail. Also, I didn't sell the strange amulet to Calixto so it's now stuck in my inventory (can't sell it or drop it).
After a few days (game time), I return to Windhelm and another murder happens. I go back to the wizard in prison and he tells me another murder will occur later that night around the Stone Quarter. Just when I'm exiting the prison, this last quest appears as "completed" and a new objective "Catch the murderer" is set. Calixto then appears running around the city with the target arrow pointing at him. Problem is I can't kill or talk to him so this quest never ends.
HOPEFULLY THIS WILL BE PATCHED IN THE UPCOMING TITLE UPDATE.
Anyone experiencing this same issue?