Suppose a forward contract on the market index matures in three months. The index pays a dividend yield of 4%/year. The "economic underlying" for the contract is how many shares of the index? Exactly 1 shares of the index About 0.98 shares of the index About 0.99 shares of the index About 0.96 shares of the index The spot price of gas is $10/1,000,000 BTUs (British thermal units). The convenience yield on natural gas is 10% (annualized continuously compounding). The price of a one-year zero-coupon bond is 0.95 (per dollar of face). The one year forward price for 1,000,000 BTUs of gas is closest to: $9.50$11.00$10.50$10.00 Suppose the S\&P 500 is trading at $4,400. It pays a 2% dividend yield (continuously compounded annual rate). The risk-free yield-curve is flat at 6.5%. The six-month forward price of the S\&P 500 is closest to: $4,500 $4,300 $4,600 $4,400 Suppose a stock is trading at 50 and will pay a $1 dividend in three months. The price of a three- and six-month zero-coupon bonds are $0.99 and $0.98, respectively. Then the six-month forward price of the stock is closest to: $49.00$52.04$51.02$50.00 The spot price of lean hogs is $1//b. The carrying-cost for lean hogs is 5%/ year. Interest rates are also currently 5%/ year. Then the one year forward price of lean hogs is closest to: $1.00$0.95$1.05 $1.10