1. Ford Motor Company used to own businesses that provided automobile parts to Ford s assembly lines. But the company no longer owns these parts supply businesses. What advantages and disadvantages did Ford have as a result of owning these businesses?
2. You want to buy a house. You can make an initial payment of $50,000 and can afford monthly payments of at most $2000. If the APR on mortgage is 4.49% and you finance the purchase over 30 years, what is the maximum price you can pay for the house?
3. What would be your implied (repo) rate on a stock index arbitrage, if the underlying index' log dividend yield is 3%, the log risk free rate is 2%, the underlying index' spot value is 51 and the price of one contract of 229-day futures is 2,572? One contract is equivalent to 50 times the underlying index' value.