Commonwealth Bank (CBA) shares are currently trading at $75. Three months from now, CBA will pay a dividend of $4.3 per share. If the riskless interest rate is 5% pa, what is the fair forward price ("F") for delivery of CBA shares in 9 months time?

Enter your answer to 2 decimal places. Do not enter the dollar sign "$".

The FTSE100 market index in London is currently sitting at 7200. The dividend yield on the FTSE100 is 3% pa and the riskfree rate is 5% pa.

Calculate the fair price ("F") for a futures contract on the FTSE100 with delivery in 17 months?

Enter you answer to 2 decimal places.

The spot exchange rate between Australia and New Zealand is AUD 1.00 = NZD 1.3. Interest rates in Australia and New Zealand are 4% and 7% per annum respectively.

Calculate the fair forward price for delivery of one NZD in 6 months time.

Your answer will be expressed in terms of AUD. Give an answer to 4 decimal places.

The spot price of West Texas Intermediate (WTI) oil is $43 per barrel.

The fair forward price for delivery of WTI Oil 3 months from now is $45. However, you notice that WTI Oil forward contracts with delivery in 3 months are quoted at $44 per barrel.

What trades are required now to capture this arbitrage opportunity?

A short forward contract can be "synthetically replicated" as follows:

Which of the following is inconsistent with the notion that there are no arbitrage opportunities?

You manage an equity portfolio currently worth $103m. The beta of this portfolio is 1.17. If the SPI200 futures contract is quoted at F=5448, how many short SPI200 contracts are required to fully hedge this equity portfolio?

Round your answer to the nearest whole number.

A trader enters a short futures contract on an asset when the futures price (F) is $2,300 per unit. Each contract covers 100 units of the underlying asset. The contract is closed out when the futures price (F) is $2,480. Which of the following is true?

You will receive $414 in 9 years time. If the discount rate is 9% per annum continuously compounded, what is the present value of this future cashflow?

Enter your answer with 2 decimal places. Do not enter the dollar sign "$".

You have a business based in Australia that has just exported a product to a buyer in Mexico. The invoice for this sale is denominated in Australian dollars (AUD) and must be paid in 30 days. That is, your customer will pay you in AUD.

Given this arrangement, what is the exchange-rate risk you face as an exporter?