QUESTION 1

1. Suppose the 6-month Mini S&P 500 futures price is 2399.25, while the cash price is 2370.48. What is the implied dividend yield if the risk-free rate is 5%?

   		2.56%
   		5.12%
   		5%
   		3%

10 points

QUESTION 2

1. A stock has a current price of 49.24 and a dividend yield of 1.5%. If the risk-free rate is 5.4% what is the futures price if the maturity is four months?

   		48.36
   		49.87
   		51.16
   		49.24

10 points

QUESTION 3

1. You are long 20 Orange juice contracts today at a settle price of $1 per pound. What is the cost of these 10 contracts for you? If the settle price is higher by 2 cents per pound tomorrow, how much do you make or lose? The contract size is 15,000 lbs.

   		$3000; -$3000
   		$0; $3000
   		$0; -$3000
   		$1000; -$3000