Problem 1 (30pt): Answer the following questions (5 points each). 1. Clarify the difference between the value of a forward contract and the forward price. 2. What are normal backwardation and contango? 3. Explain the term "Efficient Market Hypothesis (EMH)" and introduce one evidence supporting EMH and one evidence against EMH. 4. Find the current market value of a stock whose dividends grow at a constant rate of 10%. This year's dividend is announced to be $1 per share and the required return is 13%. 5. Describe the procedure of pairs trading strategies. 6. Consider the following limit-order book for a stock. If a trader submits a market ask order for 1,500 shares, what is the average price at which his order is executed