Question: Compute the 1- year forward price for a stock if the spot price is 53.72 and the risk-free rate is 3.6%. 3 pts Question 8

 Compute the 1- year forward price for a stock if the

Compute the 1- year forward price for a stock if the spot price is 53.72 and the risk-free rate is 3.6%. 3 pts Question 8 The advantage of using forwards as opposed to futures contracts when hedging is: Contract Liquidity O Ability to create an exact hedge o Immunization from counter-party risk Ability to pay gains and losses daily two or more of the answers 3 pts Question 9 When $1 million is deposited at a bank, the required reserve ratio is 15 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, before the loans are withdrawn the bank's final balance sheet, O assets will increase by $150,000 from prior to the deposit. O reserves will increase by $850,000 from prior to the deposit. O assets will increase by $1,000,000 from prior to the deposit. O liabilities will increase by $1,850,000 from prior to the deposit. None of these answers. You are screen sharing Stop Share

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