ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio Depressi $75 $ 70 $80 TES OF N 5 ATURE on $0 $-5 $ 15 - .2 1. DMUU: What would be the decision according to: (1) Maximax (optímísm); (2) Maximin (pessimism); (3) R ealism where Alpha - α = .7 (4) Equal Likelihood; and (5) Minimizing Regret? Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below), and support your final statement with a

Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125 per barrel in 48 months. What happens in 48 months if the actual price per barrel of oil is $100? A.) Tyler must pay Alex $25,000. B.) Tyler makes a profit of $25 per barrel, or $25,000. C.) The contract becomes void because the price turned out lower than expected. D.) Alex must give Tyler $10,000.

For Stock ABC  the December next year Forward is $450. A call option on ABC,  has a Strike of  $420 and costs (premium)  $50. What is the intrinsic and extrinsic value?     A. Intrinsic $30, Extrinsic $30   B. Intrinsic $40, Extrinsic $10   C. Intrinsic $0, Extrinsic $30   D. Intrinsic $30, Extrinsic $20