Math 497 Old Exam
1. Bruce deposits 100 into a bank account. His account is credited interest at
a nominal rate of interest of 4% convertible semiannually.
At the same time, Peter deposits 100 into a separate account. Peters account
is credited inter
Math 441/497FM - Midterm 1 Review
Solution Set
Problem 1 (practice Exam 3, Problem 6 from the book):
Assume that the initial deposit was equal to 1. Now find the future value of the deposit by the end of year 10.
FV
1
0.06 12 4
12
1
e0.05
6
1.7150
Now, th
Math 497G
Mathematics of Finance II
Spring 2009
Midterm SOLUTIONS
March 12, 2009
Instructions: Show all your work for full credit, and box your answers when appropriate.
Unless otherwise noted, all rates are per annum with continuous compounding.
3
1. (a)
Math 497FM
Fall 2010
Midterm
October 18, 2010
Name: ANSWER KEY
Instructions: Show all your work for full credit, and box your answers when appropriate.
Let , n , s n , and n denote the present value of an annuity immediate, due, future
a
s
value of an ann
Math 441/497FM
Fall 2009
Midterm
October 20, 2009
Name:
Instructions: Show all your work for full credit, and box your answers when appropriate.
Math 441 students complete the FIRST 5 questions. Math 497FM complete ALL 7
questions.
1. Today you have 100,0
Math 497FM
Fall 2010
Final
Name: SOLUTION KEY
Instructions: Show all your work for full credit, and box your answers when appropriate.
1. The t-year spot rate (eective annual, compounded annually) is given by st =
0.01(4 + t). Compute the xed rate on a 2-
Math 441/497FM
Fall 2009
Final
December 18, 2009
Name:
Instructions: Show all your work for full credit, and box your answers when appropriate.
1. Mike deposits $100 at the end of every 6 months into an account for 30 years. (The
last payment occurs in 30
Homework 7
Due Marth 15th
1.
A trader enters into a short forward cotton contract with
delivery in one year. The forward price is $0.50 per
pound. The delivery size is 50,000 pounds. How much
does the trader gain or lose if the cotton price in one
year fr
Forward Contract and Spot Price
A forward contract (or forward): Forward contract is an
agreement between two parties, where one party agrees to
deliver something, called the asset, to a second party for a
predetermined price, called the forward price, at
Math497 Final Learning Objectives
I. Interest Theory
A. Time Value of Money
1. The candidate will be able to define and recognize the definitions of the following
terms: a. Interest rate (rate of interest)