nine month forward price on a non dividend paying stock is entered into. What is the forward price if the spot price is $21 and the risk free interest rate continuous compounding 4% per year? 6 months later the stock price is $31 and the risk free rate is still 4%, what is the value of the forward agreement?forward contract for 5 months is entered into when a stock index is at 1000. Risk free interest rate is 3% annual continuous compounding and the dividend yield on the index is 2% annual, what is the futures price? After one month the index price is 980, what is the value of the futures agreement assuming the risk free rate with continuous compounding is now 5% and the dividend rate remains 2% and the contract price is equal to $50 times the index value?

• Assume storage costs for WTI crude oil 24 cents per barrel annually (2 cents per month). Assume storage costs are paid at the end of the month. If the risk free rate is 3% continuous compounding and spot price $93 per barrel, what is the expected futures price for crude in 3 months? Assume the spoilage rate and convenience yield are 0.