1. A market value weighted index has three stocks in it, priced at 98, 52, and 95 per share, and each firm has 206, 304 and 195 thousand shares outstanding, respectively. The value of the index today is 991. At this time, the third stock undergoes a 3 for 1 stock split. What is the new value of the index? Enter answer accurate to two decimal places.

2. You are looking at a quote for a treasury bill with 245 days to maturity, and observe that the Ask Yield is quoted at 0.08, which is a bank-discount yield.

What is the actual asking price for this bill, if its face value is $10,000?

Recall that the bank-discount yield calculation is:

r = (F-P)/F * (360/n)

where F is the face value, P is the price, and n is the number of days to maturity.

3. A price weighted index is composed of 2 stocks, A and B, priced at $60 and $200 per share, respectively, at the close of market today. So our initial value of the index is (60+200)/2 = 130.

Tomorrow stock B will split 4:1. We must adjust the divisor of the index to leave the index unchanged due to the stock split. What will be the new divisor?

Enter answer accurate to 3 decimal places

4. Go to cmegroup.com, and look up the contract specs for the Lean Hogs futures. Using this information, answer the following question:

If the December contracts are quoted at 66.92, what is the dollar size of each futures contract?

5. You think the price of WMT, currently trading at $68, is not going to change very much in the next 3 months. To make some extra cash, you decide to enter a short strangle position, selling a 3 month $75 call for $0.31 premium, and a 3 month $57.50 put for $0.33 premium. If at expiration the price of WMT shares is $73 per share, what is your net profit on this position?

Remember that each option contract is on 100 shares.