Q4. The FTSE100 on March 15, 2020 trades at 5790 points. The 9-month UK T-bill rate is 0.40% and the dividend yield of the FTSE100 is estimated at 3.5%. The rates are expressed in discrete compounding. Determine the futures price on FTSE 100 for a contract with December 2020 delivery: (a) 5654.85 (b) 5924.10 (C) 5958.54 (d) None of the above Q5. Consider an investor who owns a stock portfolio tracking the FTSE100. The investor fears a generalized decrease in U.K. share prices from March to December and decides to take a position in 20 futures contracts on the FTSE100 with December delivery at the price computed in Q4. to hedge her portfolio. The size of one futures contract is GBP 10 times the index. In December the futures price is 5750. Determine the profit or loss of 1 the investor on the futures position and state whether she took a long or a short position