1. A firm has shareholder equity of $24,408,720.00 with 1,143,403.00 shares outstanding. The firm’s common stock currently trades at $30.00 per share. What is the market-to-book ratio for the firm?
Round to two decimals
2. Suppose a stock is worth $30 right now, but in six months it may go up or down $5. What is the value of a call option with X = $31 assuming that it expires in six months and the risk-free rate is 2% per year?