A Forward Contract That Began Earlier Matures on May 15

question 1

Multiple Choice

A forward contract that began earlier matures on May 15.The value of the contract is $3,the spot is $100,a zero-coupon bond maturing on May 15 is worth $0.98,and the forward price is $100.The arbitrage profit that you can make today by trading one forward contract and other securities would be:

• A) 0
• B) $1
• C) $1.50
• D) $3.75
• E) None of these answers are correct.

---

Definitions:

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production in mammals.

Oxytocin

Oxytocin is a hormone and neurotransmitter that plays a key role in social bonding, sexual reproduction, childbirth, and the period after childbirth, fostering attachment and trust among individuals.

Coping with Stress

Strategies and mechanisms that individuals use to manage and mitigate stressors in their lives.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, secreted by the adrenal glands, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response.