Question 1

An investor receives $1084.0 in 2.0 weeks for an initial investment of $1035.0. What is the annual percentage return with continuous compounding?

10.023

232.90

120.27

123.09

Question 2

Suppose you enter into a 4.0-month forward contract on one ounce of silver when the spot price of silver is $9.0 per ounce and the risk-free interest rate is 6.5 percent continuously compounded. What is the forward price?

9.6044

9.1971

8.8071

11.672

Question 3

Pixar stock is expected to pay a single $1.7 dividend in 2.0 months. Suppose you enter into a 7.0-month forward contract to buy one share of Pixar stock when the share price is $40.4 per and the risk-free interest rate is 6.25 percent continuously compounded. What is the forward price?

37.331

40.155

43.645

40.137