1. Today you go long on 3 December contracts of lean hog futures, at a price of 62.8 cents per pound. One contract is for 40K pounds. One month later, December futures are trading at 55 cents per pound. If you close out your position at this time, what is your profit from this position?

2.

As you are caught in traffic yet again on the way home, you grab your steering wheel in a white-knuckled grip of frustration and look to the sky, imagining how cool it would be to have a flying car. Right then and there, you decide to start a Flying Car Index, which is the price-weighted index of the five largest flying car development companies. The prices of the five stocks are 49, 68, 92, 33, 67 per share, respectively, when the last company decides to have a 2 for 1 stock split, and its share price halves. What should be the new divisor for your index so that its value is unaffected by the event?

Enter answer accurate to 2 decimal places.

3. A market value weighted index has three stocks in it, priced at 89, 22, and 90 per share, and each firm has 323, 218 and 434 thousand shares outstanding, respectively. The value of the index today is 981. At this time, the third stock undergoes a 3 for 1 stock split. What is the new value of the index?

Enter answer accurate to two decimal places.

4. A municipal bond yields 6.92 percent. An investor in a marginal 26.07 percent tax bracket is comparing this bond with a similar corporate bond. What is the equivalent taxable yield on the municipal bond?

Enter answer in percents, accurate to two decimal places.