Question 2 A. A portfolio manager desires to generate $10 million 100 days from now from a portfolio that is quite similar in composition to the S&P 100 index. She requests a quote on a short position in a 100-day forward contract based on the index with a notional amount of $10 million and gets a quote of $25.2. If the index level at the settlement date is $35.7, calculate the amount the manager will pay or receive to settle the contract. (5 Marks) B. A forward contract covering a $10 million face value of T-bills that will have 100 days to maturity at contract settlement is priced at 1.96 on a discount yield basis. Compute the dollar amount the long must pay at settlement for the T-bills