Show all your work to receive credits. Correct answers with no supporting work will receive no credit. If not otherwise specified, use six decimal places in calculation and round the final answers to four decimal places

l. (4 points) Consider a security quote: Recent: $23.26 Bid: $23.24 Ask: $23.23 Suppose Ellen submitted a limit order to buy 120 shares of the security at $23.30. Will her order be executed immediately? If so at what price? . (24 points) Ellen Corp. wants to buy GE stock in nine months. Right now the stock is traded at $14.60. The related annual risk-'ee interest rate is 4.55%. The stock is expected to pay an annual dividend of $0.50 in eleven months. a. b. Describe the risk faced by Ellen Corp. and determine its position. Should they long or short the contract? Draw a timeline and clearly mark the following: initiation, maturity, time of dividend payment. Determine the forward price. . Determine the forward value at initiation. g. h. Two months later, GE stock is traded at $15.88. Determine the forward value. Draw a prot plot for Ellen Corp.'s forward position. Clearly mark the forward price and what each axis denotes. Nine months later the forward matures. The GE stock is traded at $16.50. What is Ellen Corp.'s prot? What is the counter party's prot? . (12 points) Suppose you long a ISO-day forward contract on a 9% corporate bond with a spot price of $1.294 that has just paid a coupon and will make another coupon payment in 75 days. The risk-free rate is 6%. a. b. Determine the forward price. Aer 30 days, the value of the bond in the previous example is $1,279. Draw a timeline and mark the following: initiation, today's date, maturity, and coupon payment date. Calculate the value of the forward contract on the bond to the long position