1. Suppose we wish to borrow $5,000,000 for 91 days at LIBOR beginning next December, and that the quoted Eurodollar futures price (based on a 360-day year) is 95.29. How much will be needed to repay the loan?

Answers:	a. $5,247,140
	b. $5,235,500
	c. $5,059,529
	d. $5,095,235
	e. $5,119,058

2. Suppose the current exchange rate between the United States and France is $1.21/. The continuously compounded interest rate in the U.S. is 4%, while the continuously compounded euro-denominated interest rate is 3%. What is the price of a 7-month prepaid forward contract on the euro?

Answers:	a. $1.1750/
	b. $1.2171/
	c. $1.1890/
	d. $1.2314/
	e. $1.2030/