Need help with the two questions below. Show me full calculations on how to get to the answer as well thanks!

1) The yield curve is flat at 6% per annum. What is the value of an FRA where the holder receives interest at the rate of 8% per annum for a six-month period on a principal of $1,000 starting in two years? All rates are compounded semiannually.

A) $9.12 B) $9.02 C) $8.88 D) $8.63

2) A portfolio manager in charge of a portfolio worth $10million is concerned that the market might decline rapidly during the next six months and would like to use options on an index to provide protection against the portfolio falling below $9.5million. The index is currently standing at 500 and each contract is on 100 times the index. What should the strike price of options on the index be the portfolio has a beta of 0.5? Assume that the risk-free rate is 10% per annum and the dividend yield on both the portfolio and the index is 2% per annum.

A) 400 B) 410 C) 420 D) 430