1. A March.31st, 2014 expiration European put option on a share of Facebook with an exercise price $42 was sellingon March. 1st, 2013, for $5 (put option price). If the stock price of Facebook on expiration date is $46 per share,what is the payoff of this put option? If the stock price of Facebook on expiration date is $40 per share, what is thepayoff of this put option?

2. A benchmark market-value-weighted index is comprised of three stocks. Yesterday the three stocks were priced at$12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares,respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day rate of returnon the index?