1. The current currency spot rate is $1.19 per euro. If euro denominated continuously compounded annual interest rates are 2.0%, what is the likely dollar per euro exchange rate for a 2-year prepaid forward contract?

Question options:

	$1.14
	$1.17
	$1.24
	$1.21

2. The annualized continuous dividend yield on the S&P 500 Index is 1.40%. The continuously compounded annual interest rate is 6.4%. If the 4-month forward price is $945.28 and the index is priced at $910, what is the profit/loss from a cash-and-carry strategy?

	$35.28 loss
	$19.98 loss
	$19.98 gain
	$35.28 gain

3. Canadian dollar(C$) denominated continuously compounded annual interest rate is 2.5% and U.S. dollar($) denominated continuously compounded annual interest rate is 1%. The current ($/C$) exchange rate is $0.76. What is the 2-year forward rate?

0.78
	$0.75
	$0.74
	$0.77