If a stock is selling for $90 and is split 3 for 1, the new price of the stock should be $30.  a. True    b. False

Required: a-1. If the stock price at option expiration is $143, will you exercise your call? multiple choice 1 Yes No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.)   a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)   b-1. Would you exercise the call if you had bought the November call with the exercise price $130?multiple choice 2 Yes No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.)   b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)   c-1. What if you had bought the November put with exercise price $140 instead? Would you exercise the put at a stock price of $140?multiple choice 3 Yes No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus…

If Stock Z is correctly priced, you can infer that the expected market return is ____%. Do not round any intermediate work, but round your final answer to 2 decimal places (example: enter 12.34 for 12.34%).  Do not enter the % sign. Margin of error for correct responses: +/- .05               expected return (implied by market price)      Beta     Stock Z 12% 1.48     T-bonds 5%

Please make sure the answers are clear n easy to read.

A. What is the investor's required rate of return for Green Gadgets' stock? ________% (round to two decimal paces)   B. Assuming that the investor's required rate of return for Green Gadget's stock does not change, what would you expect to happen to the price of its common stock if it cuts dividend to $3? $_______ (round to the nearest cent)   C. Should Green Gadgeds cut its dividend? ( select from the drop down menus)   Green Gadgets Should / Should not cut the dividend because cutting the dividend will increase / decrease the value of the common stock.

You sell a 50 put for 4. Stock ends at $47. Payoff=..

The duration of a preferred stock is its maturity. OA. Greater than or less than, depending on its YTM OB. Less than OC. Greater than O D. Equal to

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.24 0 -0.09 Bust 0.35 -0.12 0.2 0.04 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).

An analyst estimates the intrinsic value of a stock to be in the range $79 to $61. The current market price of the stock is $58. If the analyst is correct in their estimation of intrinsic value, the stock is likely to be: O A. Over-valued O B. Under-valued OC. Fairly-valued

V You buy a straddle, which means you purchase a put and a call with the same strike price. The put price is $2.80 and the call price is $4.20. Assume the strike price is $75.   What is the cost of this strategy?          2. What are the break-even stock prices