8006 Exam Dumps : Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition

If the continuously compounded risk free rate is 4% per year, and the continuous rate of dividend on a broad market index is 1% annually, what is the no-arbitrage 6-month futures price of the index if its spot value is $1000?

The relationship between covariance and correlation for two assets x and y is expressed by which of the following equations (where covarx,y is the covariance between x and y, σx and σy are the respective standard deviations and ρx,y is the correlation between x and y):

A)

B)

C)

D)

None of the above

What would be the total all in price payable on an 5% annual coupon bond quoted at a clean price of $98, where the settlement date is 60 days after the latest coupon payment. Use Act/360 day basis.