Question 21 (4 points) Continued from the above question, what is the price of a forward contract? (Hint: Foward Price is the future value of the prepaid forward price. Also, be careful that 2.1% is a continuously compounded quarterly interest rate, so when you apply the future value formula by multiplying the PV with the future value interest factor "et", T is measured by "quarter" (i.e., count in terms of quarter). $45.60 $45.96 $46.24 $45.28 Question 22 (4 points) The spot price of the market index is $930. A 3-month forward contract on this index is priced at $970. What is the profit or loss to a long position if the spot price of the market index rises to $950 by the expiration date? $40 loss $40 gain $20 loss $20 gain Question 20 (4 points) HAW, Inc. plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. HAW's share price today is $45.60 and the continuously compounded quarterly interest rate is 2.1%. What is the price of a prepaid forward contract, which expires immediately after the second dividend? (Hint: Prepaid Forward Price with Discrete Dividends.) $43.42 $43.72 $44.06 $44.34