Question 3 (4 points) The spot price of the market index is $950. A 6-month forward contract on this index is priced at $970. What is the profit or loss to a short position if the spot price of the market index rises to $990 by the expiration date? $40 gain O $20 loss $40 loss $20 gain Question 4 (4 points) The spot price of the market index is $930. A 6-month forward contract on this index is priced at $965. The market index rises to $945 by the expiration date. The annual rate of interest on treasuries is 1.2% (0.1% per month). What is the difference in the payoffs between a long index investment and a long forward contract investment? (Assume monthly compounding.) $15.28 $24.20 $29.41 $20.00