A) Using spot transactions at the quoted STRIPS prices and rates, what forward price could

a customer lock in today to buy $100 par of a zero maturing at time 1.5 for

settlement at time 1?

B) What forward price could a customer lock in today to sell $100 par

of a zero maturing at time 1.5 for settlement at time 1?

C) A firm (customer) is planning to undertake a project at time 1 that will require an

investment of $1,000,000. Funds wont become available until time 1.5. Thus, at time 1,

the firm will have to borrow $1,000,000 for 6 months. The firm uses the spot market

to lock in a forward loan from time 1 to time 1.5.

D) How much will the firm have to pay back at time 1.5?

Ise the STRIPS nricing data helnw