[1.] You purchase one MBI March 135 put contract for a put premium of $8. The maximum profit that you could gain from this strategy is _________.

a. $135

b. $800

c. $12,700

d. $13,500

[2.] You buy one Huge-Packing August 50 call contract and one Huge-Packing August 50 put contract. The call premium is $1.60, and the put premium is $4.85. Your highest potential loss from this position is _________.

a. $160

b. $485

c. $645

d. unlimited

[3.] The current level of the S&P 500 is 700. The dividend yield on the S&P 500 is 3%. The risk-free interest rate is 5%. The futures price quote for a contract on the S&P 500 due to expire 3 months from now should be __________.

a. 709.19

b. 721.61

c. 703.47

d. 726.15

[4.] A hypothetical futures contract on a nondividend-paying stock with a current spot price of $30 has a maturity of 3 years. If the T-bill rate is 6%, what should the futures price be?

a. $30.00

b. $28.20

c. $37.73

d. $35.73

[5.] You purchase an interest rate futures contract that has an initial margin requirement of 15% and a futures price of $124,488. The contract has a $100,000 underlying par value bond. If the futures price falls to $117,500, you will experience a ______ loss on your money invested.

a. 27.00%

b. 37.42%

c. 48.42%

d. 60.42%