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1. The stock of RUSH Music Enterprises (RUSH) has a current spot price of 100. RUSH stock pays a quarterly dividend of 3.50. The next

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1. The stock of RUSH Music Enterprises (RUSH) has a current spot price of 100. RUSH stock pays a quarterly dividend of 3.50. The next dividend is payable in 2 months. The continuously compounded risk free interest rate is 5%. Calculate the price of a 9 month Prepaid Forward contract on the stock of RUSH. 2. The R40 Index pays dividends at a continuous rate of 3%. The current price of the R40 Index is 1500. The continuously compounded risk free interest rate is 6%. Calculate the price of a prepaid forward if you receive the Index in eight months. 3. The R30 Index has a current price of 2000. The two year prepaid forward price of the Index is 1900. The risk free interest rate is 8% compounded continuously. Calculate the dividend rate on the Index

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