1.An investor sells a futures contract on an asset when the futures price is $1,500. Each contract is on 100 units of the asset. The contract is closed out when the futures price is $1,480. Which of the following is true?

a)The investor has made a loss of $2,000

b)The investor has made a loss of $4,000

c)The investor has made a gain of $4,000

d)The investor has made a gain of $2,000

2.What is the duration of a five-year bond with a yield of 9% (continuously compounded) pays an 8% coupon at the end of each year?

a)4.79

b) 3.89

c)4.99

d)4.29

3.The spot price of an investment asset that provides no income is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%. What is the four-year forward price?

a)$20.11

b)$44.75

c)$35.64

d)$40.50