Question: Problem 2 a) Calculate the implied annual risk-free rate in US Dollar if the equity futures contract price/value in Problem 1a) is 3000. How would

Problem 2

a) Calculate the implied annual risk-free rate in US Dollar if the equity futures contract price/value in Problem 1a) is 3000. How would an investor construct a portfolio to earn this rate of return using futures and cash positions? b) Calculate the implied annual Japanese Yen risk-free rate if the futures price/value in Problem 1b) is equal to US$ 0.008 /JPY.

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