1. Assume that an investor holds GHS 2000 in an equity fund indexed to the GSE Composite index and plans to temporarily hedge her exposure to risk by taking a short futures position. Assume that the indexed portfolio pays dividends totalling Ghs50 over the course of the year, and all dividends are paid at year -end. Finally, assume that the futures price for year end delivery of the GSE Composite index is Ghs2300. If the value of the share portfolio above is Ghs1950 at the end of the year. According to the spot - futures parity theory, the T - bill rate should be .....

2. Assume that an investor holds GHS 2000 in an equity fund indexed to the GSE Composite index and plans to temporarily hedge her exposure to risk by taking a short futures position. Assume that the indexed portfolio pays dividends totalling Ghs50 over the course of the year, and all dividends are paid at year -end. Finally, assume that the futures price for year end delivery of the GSE Composite index is Ghs2300. If the value of the share portfolio above is Ghs1950 at the end of the year. What will be the return on this portfolio?

3. Assume that an investor holds GHS 2000 in an equity fund indexed to the GSE Composite index and plans to temporarily hedge her exposure to risk by taking a short futures position. Assume that the indexed portfolio pays dividends totalling Ghs50 over the course of the year, and all dividends are paid at year -end. Finally, assume that the futures price for year end delivery of the GSE Composite index is Ghs2300. If the value of the share portfolio above is Ghs1950 at the end of the year. If the T-bill rate were 15%, what would be the theoretical fair price of this futures contract?