Problem 1 Calculate the fair price/value in US Dollar of the following contracts, given a financing rate in Dollars of 2%: a) A nine-month equity index futures contract given a current index level of 3,000 and a continuously compounded annual dividend yield of 1%. b) A six-month foreign exchange futures contract for Japanese Yens given a spot exchange rate of JPY 122/US$ and a continuously compounded annual risk-free rate of 5% in Yens. c) A three-month U.S. Treasury bond futures contract given a cash market price for the cheapest-to-deliver (CTD) bond of 95.25. The CTD bond has a coupon rate of 4.0% paid semi-annually, accrued interest today of $.5 per $100 of face, and a delivery factor of 0.90