Cindy buys a stock on January 1 for $25.  It pays a total dividend of $1 during the first year, and trades for $30 at the end of the first year.   During the second year, it pays a total of $2 in dividends, and at the end of the second year, the stock trades for $26.  What is Cindy's holding period return?   Question 5 options:   -13.33%   7.85%   -6.67%   16%

3. Kelly has one share of a stock. She has two days to sell her stock. At the opening of the stock market on each day, she decides whether to hold or sell the stock. If she decides to sell the stock, she sells it at the opening price. On each day, the stock price is expected to increase by $20 with probability 0.4 and decrease by $16 with probability 0.6 at the closing of the market. Assume that the opening price on the first day is $100. Kelly wants to maximize her wealth. a. Construct a decision tree for Kelly's stock selling problem. b.  Find an optimal decision strategy for Kelly using the expected value approach. What is the expected value of the optimal decision strategy? Show the backward pass procedure.

An investor sells 10 call options with an exercise price of $35 for a price of $5.00 per each contract. If on the expiration day the underlying asset is trading at $43 per share, what is investor’s gain or loss?     $50 gain     $30 gain     $20 loss     $30 loss

Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.  Required:a. What is the margin in Dée’s account when she first purchases the stock?   b. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account?   c. If the maintenance margin requirement is 30%, will she receive a margin call?multiple choice Yes No Correct d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)       Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.  Required:a. What is the margin in Dée’s account when she first purchases the stock?   b. If the share price falls to…