1. Which of the following Is not a major function of investment banking?
a. Proprietary Trading
b. Synthetic Securities, or Financial Engineering
c. Market Making
d. Managing large equity mutual funds
2. A stock has a market price of $25 and a standard deviation of returns of 24 percent. The $25 call option matures in 4 months and the risk-free rate is 2.89 percent. N(d1) is .555198 and N(d2) is .500096. What is the value of the call option per share of stock?
$1.71
$2.16
$1.86
$1.50
$1.62