1. The current interest rate in the U.S. is 2.7% and in the Eurozone it is 1.8%. If the Spot rate is currently EURUSD 1.1906, what is the six-month Forward rate also expressed in EURUSD, that is, expressed in USD per EUR?
2. How to find the present value of an annuity with payments of $12,000 for 3 years at 8%.
3. What is the role of hedging in financial futures markets? Contrast this with arbitraging.