Question 19 (4 points) A Forward Rate Agreement contains an agreed interest rate of 4.5% on a 6-month loan. If settled in arrears, what amount would the borrower pay or receive on a $500,000 loan if the prevailing 6-month interest rate is 3.5%? O $5,000 receipt $17.500 receipt O $22,500 payment O $5,000 payment Please use the following information for the next 3 questions. The S&R index spot price is 1200, the continuously compounded annual risk-free rate is 5%, and the continuous dividend yield on the index is 3%. Question 20 (4 points) What is the fair value of the forward price (i.e., the no arbitrage price)? $1,245.85 $1.218.14 O $1,261.52 $1,224.24