At a given point of time, the following quotes were observed in the markets: the S&P500 index was 2559.36, and the S&P500 index futures expiring in three months was trading at 2555.00. Why was the futures price lower than the spot index value? It is because investors had no confidence in the president of the U.S It is because investors were pessimistic about the U.S. economy. It is because the risk free rate was lower than the dividend yield of the S&P500 portfolio. It is because stock markets was in a downward trend. Question 7 1 pts The current spot price of a stock is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%. It is known that the stock will pay a cash dividend of $2 at the end of the first year and a cash dividend of $3 at the end of the second year. What is the three-year forward price of the asset? Answer with two decimal place accuracy without the dollar sign. 34.6200 Question 8 1 pts The current exchange rate is CNY 6.30 per USD. The six-month risk-free interest rates in China and in USA are 5% and 3% per annum, respectively (both expressed with continuous compounding). What is the six-month forward rate (expressed as the number of CNY per USD)? Answer with two decimal place accuracy (without the curreny symbol). 6.3600