Included were stock options to buy more than 800,000 shares of NEV stock. How will the options affect NEV’s compensation expense?

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.

Assume we are in July, 2023. In July of 2023, the share prices of company B are $80 per share. You believe they should be $30 per share, and are thus overvalued. December 2023 put options on a strike price of $60 per share are currently valued at $5. Each put contract is based on 100 shares. a.) What is your net dollar profit or loss  as a holder of the put contract (based ona contract size of 100 shares) if we arrive at expiry in December and you are wrong and Company B shares are selling for $100?

Stock options are one of the riskiest and potentially lucrative financial instruments available to investors. Stock options give the investor the right to buy or sell a particular stock for a stated price within a specified period of time. For example, on December 20th, an investor who believed that the stock of Apple Computer, Inc. was underpriced at $171.54, could buy an option to purchase 100 shares of Apple for $176.00 per share at any time until December 31st. The price of the option was $2.60 per share. Assume the investor purchased the option for $260.00 and Apple stock rose to $179.85 on Dec 23rd. Further, assume the investor exercised the option and bought the stock for $176.00 per share on Dec 23rd and immediately sold the stock for $179.85 per share. What rate of return did the investor make in 3 days from Dec 20th to the 23rd? (Round the final answer to two decimal places.) The rate of return is _________%.