Suppose you buy a forward contract at $40 with expiration in 6 months. After 3 months, the underlying asset has spot price $35. The risk free rate is 3%. Assuming that the underlying asset does not pay a dividend, what is the value of the forward contract at 3 months. (Make sure to indicate a negative value with a minus sign.)

Select one:

a. -$5.00

b. none of the above

c. -$4.71

d. $4.71

e. -$5.07

Suppose you buy a futures contract at $150. The next day the futures price changes to $147. What amount will be added to/subtracted from your margin account due to mark-to-market.

Select one:

a. -$3

b. it is impossible to tell

c. none of the above

d. $3

e. 0

What would be the spot price if a stock index futures price were $75, the risk-free rate were 7 percent, and the futures contract expires in three months? Assume the index does not pay a dividend.

Select one:

a. $72.60

b. none of the above

c. $76.32

d. $77.48

e. $73.74