If the stock market index is at a level of 1,120 and the one year forward on the index is 1,210

6). The relationship of formards and futures is bret reger sented by she fallewime. statement(o): a) If futares price meviments and interest rate mes ravate are necatively cerrelated, then futures pricre will be higher thas farmard griecs b) If fartares price mevenarets and interwat rate mev raments arv pesitively cerrelated, then futures prices with be lewer than farmard priess. c) If forures price anevcants and interest rate mescments are ancerrelated, thea futures and formard pricess will ceincide. d) All of the above c) None of the abeve 7) A stock has a current price ef 520. Tbe rish-froe inte:zof rate for a half-year mafurity is 655 and the dividend pay meat is 52 . Ass re continuous compounding. What is the sir-menth forvard price of the steck? a) 520.30 b) 520.61 c) 519.11 d) 521.24 c) None of the above 8) If thestock market index is at a level of 1,120 and throne-year forward on the index is 1,210, what is the implied repo rate in continuousls compounded terms (assuming zero dividends on the indes)? (a) 5.7276 (b) 65296 (c) 7.7296 (d) 8.6276