Differences in futures contracts and forward contracts

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1. What are similarities and differences between futures contracts and forward contracts?

2. A brochure reads, " excellent interest rate of 12% ". Find the effective interest rate if compounding occurs quarterly, monthly, weekly, daily, and continuously? Graph the result.

3. A company currently has maintained an ROE of 16% by paying out 30% of earnings and reinvesting the remainder. Last year the company earned $3.00 and declared a dividend of 90 cents. If the discount rate on the company’s stock is 12%, what is the PVGO imbedded in the stock?

Reference no: EM131925663

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