1.Calculate the present value of $100 in 6 years. Assume 6.9% interest rate with continuous compounding.

2.On 8/15/2019, a 3-year forward contract, expiring 8/15/2022, on a non-dividend-paying stock was entered into when the stock price was $51 and the risk-free interest rate was 10.8% per annum with continuous compounding. 1 year later, on 8/15/2020, the stock price becomes $55. What is the "delivery" price of the forward contract entered into on 8/15/2019?

3.Several months ago, XYZ entered into a long forward contract on an asset with no income. XYZ agreed to pay $30 to seller at maturity. Today, the contract matures in 4 months. The risk-free rate with continuous compounding is 7.2% per annum, the underlying asset price is $38.76. Calculate the value of the above forward contract.

4.XYZ is a BBB rated company with a credit spread of 1.50%. It expects interest rate will increase in future. Today, it wants to lock in the 3-month interest rate between next December and March. Currently, next December Eurodollar futures price is 97.54 and March Eurodollar futures price is 97.55. At which rate, can XYZ lock in to borrow for 3 months starting in next December?

5.Suppose James is managing a portfolio consisting of T-notes. He is concerned of possible bond price decline due to interest rate increase in future. To protect against the potential loss,he should short T-note futures today. True or false?

6.To protect against future short-term interest rate decrease,a bank should long Eurodollarfutures today. True or false?