1. You purchased eight Hartford Construction call option contracts with a strike price of $35 when the option was quoted at $2.01. The option expires today when the value of Hartford Construction stock is $38.70. Ignoring trading costs and taxes, what is the total profit or loss on your investment?
$1,594
$876
$1,080
$1,352
$3,210
2. Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 11.00 percent. Their recent dividend was $1.43. What is the value of their stock when the required rate of return is 15.00 percent?
$.3968
$.3575
$39.68
$35.75