1. A preferred share of stock is currently trading for $45.50 on the New York Stock Exchange. If this instrument pays a dividend of $3.25 a year, what is its annual yield?
2. You buy a put option on a stock for a premium of $3.78. The current stock price is $54, and the option strike price is $45. What is your break-even stock price?
3. Assume the average market return over the next 50 years is expected to be 9.2%. If an investor contributes $13 thousand into an investment account today, pays 1.5% of assets under management for various fund and advisor fees, and waits for 50 years, what percentage of his final wealth has he sacrificed in fees?
Enter answer in percents.