(a.) Consider a 1-year forward contract on an investment asset that provides no income. It costs GH 2 per unit to store the asset, with the payment being made at the end of the year. Assume that the spot price is GH 450 per unit and the risk free rate is 7% per annum for all maturities. What is the theoretical forward price?

(b.) Assume that the risk-free interest rate is 9% per annum with continuous compounding and that the dividend yield on a stock index varies throughout the year. In February, May, August, and November, dividends are paid at a rate of 5% per annum. In other months, dividends are paid at a rate of 2% per annum. Suppose that the value of the index on July, 31, 2012, is GH 300. What is the futures price for a contract deliverable on December 31, 2012?