1. Consider the three stocks in the following table. P represents price at time t, and Q represents shares outstanding at time t. Stock C splits two for one in the last 50 100 100 200 200 95 45 110 100 200 200 95 45 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t-0 to t-1). (5pts) What must happen to the divisor for the price-weighted index at t-2? (3pts) Calculate the rate of return of the price-weighted index for the second period (tel to t=2). b. c. (3pts) d. Calculate the rate of return on a market value-weighted index of the three stocks for the first period (t-0 to t-1).(5pts) 2. Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and maturities of six months. The stock price is $45 in six months. (6pts) a. What would be the profit per share of stock to an investor who buys the call for $4? (3pts) b. What would be the profit per share of stock to an investor who buys the put for $4? (3pts)