AIM 7: Define and provide an example of the cost-of-carry model for forward prices where the assets have no interim cash flows.

1、Using the continuous time forward pricing model, what is the no-arbitrage price of a 9-month forward contract if the interest rate is 2.4 percent and the spot price of the asset is $1,650?

A) $1,664.
 
B) $1,689.
 
C) $1,621.
 
D) $1,680.

2、Using the continuous time forward pricing model, what is the no-arbitrage price of a 3-month forward contract if the interest rate is 3.2 percent and the spot price of the asset is $750?

A) $780.
 
B) $756.
 
C) $744.
 
D) $729.