1. If you plotted the returns of a particular stock versus those in the S&P 500 Index over the past 5 years, what would the slope of the regression line tell you about the stock’s market risk?
2. Ceteris paribus, should the Asian option be price lower than the European option, why or why not?
3. How would you value a start-up operation, where you do not have the benefit of previous years' financials, or for a brand new operation of an existing company.