1.) The current high inflation environment in developing nations can potentially lead to: (I) Inflation risk (II) Intere

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answerhappygod
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1.) The current high inflation environment in developing nations can potentially lead to: (I) Inflation risk (II) Intere

Post by answerhappygod »

1.) The current high inflation environment in developing nations
can potentially lead to:
(I) Inflation risk
(II) Interest rate risk
(III) Credit risk
a. I and II only.
b. I and III only.
c. I, II, and III.
d. II only.
e. I only.
2.) A non-dividend paying stock X is currently traded at $100
per share. If the 1-year risk-free interest rate is 5%, what is the
no-arbitrage price for a 1-year forward contract written on stock
X?
Please ignore the $ sign when you write your answer (e.g.
write 100 instead of $100).
also please explain choice or no like thanks!!
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