Question 10.5 pts

Compute the ACT/365 interest rate for 142 days where the ACT/360 interest rate is 3.08%. Give your answer to four decimal places. Enter 4.1234% as 4.1234.

Question 20.5 pts

Compute the discount factor for 212 days where the ACT/360 interest rate is 3.52%. Give your answer to four decimal places.

Question 30.5 pts

Compute the continuously compounded forward rate between 60 and 327 days where the continuously compounded zero rate for 60 days is 4.87% and the continuously compounded zero rate for 327 days is 5.99%. Compute to four decimal places. If your answer is 3.2345% then enter 3.2345.

Question 40.5 pts

Compute the continuously compounded forward rate between 113 and 144 days where the actual/360 zero rate for 113 days is 5.87% and the actual/360 zero rate for 144 days is 4.35%. Compute to four decimal places. If your answer is 3.2345% then enter 3.2345.

Question 50.5 pts

Compute the ACT/360 forward rate between 74 and 213 days where the actual/360 zero rate for 74 days is 3.81% and the actual/360 zero rate for 213 days is 3.13%. Compute to four decimal places. If your answer is 3.2345% then enter 3.2345.

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Question 60.5 pts

Compute the continuously compounded interest rate for 318 days where the ACT/365 interest rate is 3.7%. Give your answer to four decimal places. Enter 4.1234% as 4.1234.

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Question 70.5 pts

Compute the ACT/365 interest rate for 638 days where the discount factor is given by 0.97. Give your answer to four decimal places. Enter 4.1234% as 4.1234.

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Question 80.5 pts

Compute the continuously compounded forward rate between 67 and 207 days where the actual/365 zero rate for 67 days is 4.79% and the actual/365 zero rate for 207 days is 4.87%. Compute to four decimal places. If your answer is 3.2345% then enter 3.2345.

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Question 90.5 pts

Compute the continuously compounded interest rate for 593 days where the discount factor is given by 0.963. Give your answer to four decimal places. Enter 4.1234% as 4.1234.

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Question 100.5 pts

Compute the discount factor for 123 days where the ACT/365 interest rate is 4.45%. Give your answer to four decimal places

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Question 111 pts

A stock is trading in the market at $353. An investor borrows 152 shares and sells them into the market. Interest rates are 4.89% and the borrow cost is 0.41%. Both are quoted as continuously compounded. The investor waits 16 days and buys back the shares at $343. Ignoring the fluctuating collateral position how much money did he make in total on the transaction? You need to compute both the profits/losses on the shares as well as the interest on the collateral. Round your answer to two decimal places.

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Question 121 pts

When an investor sells stock short they first borrow the stock and then sell it into the market. To whom is the dividend owed?

Group of answer choices

The lender of the stock

The short seller

The owner of the shares on the record date.

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Question 131 pts

For a given company there are three key dates relevant to a dividend. These are the announcement date, the record date, the ex-dividend date and the payment date. On which dates are share price movements clearly linked to the dividend.

Group of answer choices

Announcement Date

Record Date

Ex-dividend Date

Payment Date

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Question 141 pts

By how much should the share price fall on the ex-dividend date due to the dividend?

Group of answer choices

The amount of the dividend

The present value of the dividend

Cannot tell

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Question 151 pts

If the borrow cost is above the rate of interest for un-collateralized borrowing then the lender of the shares is paid interest to hold collateral.

Group of answer choices

True

False