13. Suppose we enter into a 90-dav T-bill futures contract quoted at 6%. The nonona is $1.000.000. What is the quoted price and actual price! A. Quoted price-99, actual price=985000 B. Quoted price=99, actual price=940000 C. Quoted price=94, actual price=985000 D. Quoted price=94, actual price=940000 E. None above 14. Suppose our underlying is a stock XYZ. Today (t=0), XYZ is priced at $1000. The storage and insurance cost is $100, paid in advance. The forward contract uses XYZ as the underlying, which will expire in one year from today. The forward price at today (0) IS $1100. What is the arbitrage profit that you can make today based on cost-of-cart A. $100 B. $1100 C. Unlimited D. No arbitrage opportunity E. Cannot determine because of lack of information 15. The treasurer of Company A expects to receive a cash inflow of $15,000,000 in 90 days. The treasurer expects short-term interest rates to fall during the next 90 days. In order to hedge against this risk, the treasurer decides to use a FRA that expires in 90 days and is based on 90-day LIBOR. The FRA is quoted at 6%. At expiration, LIBOR is 5%. Assume that the notational principal on the contract is $15,000,000. What would be the payoff, if you short the FRA and hedge the risk? A. Profit of $142,857 B. Loss of $142,837 C. Profit of $37.037 D. Loss of $37,037 E. None above 16. A manager has 10.000.000 of his index equity investment. The dealer quotes a price of $2,000 on a forward contract covering $10,000,000 of index investment. Suppose the manager long a forward contract. Assume the contract will be cash settled. At the expiration, the index decreases to $1,900. What is the total profit or loss of the manager? A. Zero. B. Profit of $500,000 C. Loss of $500,000 D. Profit of $1,000,000 E. Loss of $1,000,000