BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is today the world's largest asset manager with $7 trillion in assets. Suppose Blackrock stock (ticker: BLK) is trading at $400 and pays a discrete dividend of $3 to its shareholders once per quarter, the first dividend of $3 to be paid in 0.25 years from today, the second dividend of $3 to be paid in 0.5 years from today, the third dividend of $3 to be paid in 0.75 years from today, and the fourth dividend of $3 to be paid in 1 year from today. The continuously compounded annual risk-free interest rate that you can lend or borrow at is 8%. In this problem, you are to use continuous compounding of interest in all computations. Required:
a. What is the fair value price for a one-year prepaid forward contract on BLK?
b. Suppose the market prices for a normal (not prepaid) 1-year forward contract on Blackrock are as follows:

bid price for BLK forward contract: $520.95
ask price for BLK forward contract: $530.95

Does an arbitrage opportunity exist? If so, specify the exact components of the portfolio you need to capture the arbitrage, and the exact arbitrage profit.

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.