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Question 1 of 12
1. Question
Using the Q8, calculate value of forward contract if stock now rises to 1500.
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Question 2 of 12
2. Question
Read the following statements and choose the correct option:
Statement 1: If interest rate declines, forwards have slightly higher price than futures.
Statement 2: Futures and forwards can have a range of delivery dates.
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Question 3 of 12
3. Question
Index arbitrage can be performed by trading a subset of stocks representing index?
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Question 4 of 12
4. Question
Stock ABC is a nondividend paying stock with current price of $70. The riskfree rate is 5% per annum. Calculate price of a sixmonth forward contract.
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Question 5 of 12
5. Question
A coupon paying bond priced at $500 that pays a 6% coupon semiannually. Assuming riskfree rate of 5%, calculate the price of 6month forward contract. Coupon will be paid in 6 months.
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Question 6 of 12
6. Question
Stock ABC is a nondividend paying stock with current price of $100. The continuously compounded riskfree rate is 6% per annum. Calculate price of 1year forward contract
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Question 7 of 12
7. Question
A $1000 priced bond pays $50 coupon in 2 months and 5 months. Assuming continuously compounded riskfree rate, is 8% per year, calculate price of a 6month forward contract?
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Question 8 of 12
8. Question
Stock XYZ has a dividend yield of 3% and is currently trading at $500. Assuming riskfree rate is 5%, calculate the price of a 4month forward contract?
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Question 9 of 12
9. Question
In the above example, assuming continuously compounded yield and riskfree rate, calculate the price for a 6month forward contract?
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Question 10 of 12
10. Question
Value of a forward contract at initiation is:
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Question 11 of 12
11. Question
Stock ABC is trading at $1300. A 6month forward contract on stock ABC is trading $1400. Assuming continuously compounded riskfree rate, be 6% per annum, calculate the value of forward contract?
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Question 12 of 12
12. Question
In the above example, if we say that stock has a continuous dividend yield of 8%, what is value of forward contract now?
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