The spot price of an investment asset that provides no income is $52 and the risk-free rate for all maturities (with continuous compounding) is 3.5%. What is the 4-month forward price?

	A.	$51.4
	B.	$45.2
	C.	$59.8
	D.	$52.6

An exchange rate is 1.42 and the nine-month domestic and foreign risk-free interest rates are 3.8% and 5.6% (both expressed with continuous compounding). What is the nine-month forward rate?

	A.	1.46
	B.	1.44
	C.	1.21
	D.	1.40

A stock provides a dividend yield of 2.95% (with continuous compounding). The spot price of the stock is currently $460, and the risk-free rate is 4.5% with continuous compounding. What is the 30-month forward price for a stock?

	A.	$443
	B.	$478
	C.	$529
	D.	$554

4.

The spot price for a commodity is $120. The annual storage cost for the commodity in terms of a continuous yield is 4.8%. The appropriate continuously compounded annual risk-free rate is 3.5%. What is the 8-month commodity futures price?

	A.	$108
	B.	$121
	C.	$127
	D.	$119

5.

Which of the following describes a plain vanilla interest rate swap?

	A.	A derivative contracts that enable investors to swap credit risk with another investor
	B.	An agreement to exchange interest at a fixed rate for interest at a floating rate
	C.	A way of converting a fixed rate liability to a floating rate asset
	D.	None of the choices