The Montclair State University endowment has a commitment to fund two initiatives as described below. As a hedge to these commitments, it entered into three forward contracts with cash flows also described below. Initiative 1: $10 mil dollar per year for the next four years plus $100 mil in year 4 Initiative 2: pay $100 mil in scholarships next year Forward Contract 1: Fund borrows $110 mil next year and repays the loan in year 4 locking in a 10% borrowing rate. In other words, the endowment receives $110 in year one and repays the loan in year 4 assuming a 10% annualized interest rate. Forward Contract 2: Fund borrows $10 mil in year 2 and re-pays the loan in year 4 locking in a 10% borrowing rate. In other words, the Fund receives $10 mil in year two and repays the loan in year 4 plus all accrued interest at 10% per year. Forward Contract 3: Fund borrows $10 mil in year 3 and re-pays the loan in year 4 locking in a 10% borrowing rate. In other words, the Fund receives $10 mil in year three and repays the loan in year 4 plus accrued interest at 10% per year. aka d S M AND PRIME SHU 5 (212)

The Montclair State University endowment has a commitment to fund two initiatives as described below. As a hedge to these commitments, it entered into three forward contracts with cash flows also described below. Initiative 1: $10 mil dollar per year for the next four years plus $100 mil in year 4 Initiative 2: pay $100 mil in scholarships next year Forward contract 1: Eund borrows $110mil next year and repays the loan in year 4 locking in a 10 s borrowing rate. In other words, the endowment receives $110 in year one and repays the loan in year 4 assuming a 10% annualized interest rate. Forward contract 2: Fund borrows $10mil in year 2 and re-pays the loan in year 4 locking in a 10 r borrowing rate. In other words, the Fund receives $10mil in year two and repays the loan in year 4 plus al1 accrued interest at 10 ser year. Forward Contract 3: Fund borrows $10mil in year 3 and re-pays the 10a n in year 4 locking in a 10% borrowing rate. In other words, the Fund receives $10mil in year three and repays the loan in year 4 plus accrued interest at 10% per year