1. Exactly one week before a public announcement that it will be acquired, the abnormal return to stock XY Z jumps from $10, where it has been for over a year to $20. No further changes in the price occur after this one-time change. We can safely assume the abnormal return is attributable to the future acquisition. This is consistent with: (a) All three forms of the efficient market hypothesis- (b) Both the weak and semistrong forms of the efficient market hypothesis (c) Only the weak form of the efficient market hypothesis (d) None of the forms of the efficient market hypothesis- 2. Well-informed arbitrageurs can make a profit if:- (a) The behavioral critique is correct (b) The weak form of the efficient market is true, but not the strong or semi-strong forms (c) Both of the above (d) Neither of the above 3. Which of the following statements are true?- (a) American call options on stocks that pay no dividends are generally worth more than corresponding European call options (b) American put options on stocks that pay no dividends are generally worth more than corresponding European put options (c) Both of the above statements are truet (d) None of the above statements are true 4. Which of the following statements is true about option values?- (a) The price of a call option should always increase by $1 if the price of the underlying stock increases by $14 (b) The payoff to a call option at expiry always increases by $1 if the price of the underlying stock increases by $14 (c) Both of these statements are true (d) Neither of these statements are true 5. Consider at-the-money European puts and calls on the same stock. The stock does not pay dividends, and the options both expire in one year. Which of the following is true? (a) The put and call have the same premium- (b) The put has a higher premium than the call (c) The put has a lower premium than the call (d) We cannot know whether the put or the call has the higher premium with this information