Math Question 10 (BONUS): There are two European options available on the same non-dividend paying stock with the same time to expiration. The 90-strike call costs $20 and the 100-strike call costs $8. Is there an arbitrage opportunity due to the above call prices? If yes, create a portfolio to show that an arbitrage opportunity exists. If no, explain why not. Assume zero interest rates. Once completed, select “True” below.

Math Question 1: ABC holdings plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABC’s share price today is $45.60 and the continuously compounded interest rate is 8.4%. What is the forward price (in dollars) for the delivery of ABC stock immediately after the second dividend? 

Math Question 9: Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $3, $5, and $8, respectively. Assume zero interest rates. (a) Explain how a butterfly spread can be created. Construct a table and draw a graph showing the profit/loss from this strategy. (b) What is the maximum profit possible with this strategy?(c) For what range of stock prices would the butterfly spread lead to a loss? Answer each part of the question above on paper. Once completed, select “True” below.

The next TEN questions are the math questions for the exam. Question #10 is an optional bonus problem. Make sure to write down supporting written work for ALL problems. All questions are graded out of 5 points.  If you get the multiple choice or numeric answer wrong, you can still earn up to 4.5 pts for your supporting written work.DO NOT SUBMIT OR CLOSE YOUR TEST before answering all the questions.

Math Question 2: A portfolio consists of short a one-year, 50-strike European call option with price equal to $8.50, and long a one-year, 60-strike European put option with price equal to $6.75. Both options are on the same underlying non-dividend paying stock and assume zero interest rates. The stock price in one year is $55. What is the portfolio’s profit/loss at expiry (in dollars)? 

All of the following are related to menarche except which one?

Which of the following is defined as the maturation and discharge of an egg?

You are lounging at home watching a movie late one Saturday night when your teenage brother stumbles in the front door. You ask him what’s wrong and he replies, “Nothing is wrong, I’m just really tired.” He bends over to take off his shoes, loses his balance, and falls on his head. You quickly reach the conclusion that your brother has been drinking alcohol and is extremely intoxicated. Which part of your brother’s brain gave him away?

Which of the following is defined as the failure to start menstruating at puberty and can be caused by issues with the reproductive organs, hormonal imbalances, and poor health?

A researcher wants to find out the percentage of American college students who used condoms the first time they had sex. Which of the following research types is best suited to answer the researcher’s question?