Question 10 (2.5 points)

The S&P 500 Index is priced at $950.46. The annualized dividend yield on the index is 1.40%. What is the price of a 6-month prepaid forward contract on the S & P 500 Index?

Question 10 options:

	$940.53
	$947.14
	$943.83
	$937.25
	$933.97

Question 11 (2.5 points)

The current currency spot rate is $1.33 per euro. If dollar denominated interest rates are 3.0% and euro denominated interest rates are 4.0%, what is the likely dollar per euro exchange rate for a 3 year forward contract?

Question 11 options:

	$1.3037
	$1.2907
	$1.3102
	$1.3234
	$1.2847

Question 12 (2.5 points)

The quoted Eurodollar futures price is 94.60. What 3-month LIBOR rate is implied by this price?

Question 12 options:

	1.85%
	1.60%
	1.35%
	1.10%
	0.85%

Question 13 (2.5 points)

KMW, Inc. plans to pay a dividend of $0.50 per share both 3 and 6 months from today. KMW's share price today is $38.80 and the continuously compounded quarterly interest rate is 1.5%. What is the price of a 6-month prepaid forward contract, which expires immediately after the second dividend?

Question 13 options:

	$35.0
	$36.5
	$37.8
	$34.2
	$33.3

Question 14 (2.5 points)

Suppose the corn price is $2.40 initially, the annual continuously compounded interest rate is 6.5%, The 10-month corn forward price is $3.19. What is the corn storage cost per month?

Question 14 options:

	1.90%
	2.30%
	2.73%
	3.17%
	3.62%