1.For the Nasdaq stock index futures traded on the CME, make a chart of the futures price as a function of maturity. Collect appropriate (or assume) interest rate data and determine the estimated dividend yield for the NASDAQ. How does it compare to the S&P and why do you think one might be higher or lower?

2.An investor wants to sell her diversified stock portfolio in December, but this would create a large taxable profit for her. She would like to be able to defer the taxes one year. How can she accomplish this?

3.Why are financial futures priced differently from nonfinancial futures?

4.Can you provide an example of basis risk as it applies to hedging a portfolio of stocks with equity index futures?