4. The R30 Index has a current price of 1725.42. The two-year prepaid forward price of the Index is 1500. The annual risk-free interest rate is 5.00% compounded continuously. Calculate the dividend rate on the Index. (Ans = 7.00%)

5. The current spot price of the stock of Fly By Night Industries is 525. Fly By Night Ind. pays a quarterly dividend of 5.00. The next dividend will be paid in two months. The annual risk-free interest rate compounded continuously is 5.50%. Calculate the forward price for a one year forward contract.

6. The one year forward price for the stock of The Moving Pictures Moving Company (Ticker Symbol YYZ) is 423.96. YYZ pays a semi-annual dividend of 7.00 with the next dividend payable in 2 months. The annual risk-free interest rate is 5% compounded continuously. Calculate the current spot price of YYZ stock.

7. An Index has a current price of 2112. The annual risk-free interest rate is 3.50% compounded continuously. The Index pays a dividend at a continuously compounded rate of 5.00%. Determine the forward price of the index to be delivered in 18 months.

8. An Index of clock makers and watch repair companies, Time Stand Still (TSS), has a current price of 1300.00 and pays dividends continuously at an annual rate of 2.4%. The one year forward price for the TSS Index is 1400.00 Calculate the annual risk-free interest rate compounded continuously.