1. Southwest, Inc. stock is trading at $46 a share. The July 45 call on Southwest is trading at $3. What is the intrinsic value of one July 45 call contract?

2. George purchased a futures contract at 289. The contract is on 2500 units, requires a 10 percent margin deposit and is priced in cents per unit. George sold the contract at 278. What was George's return on invested capital? (as a percentage)

3. One warrant gives the holder the right to buy one share of stock at $50 per share. If the stock is currently trading at $55 per share and the warrant is being quoted at a price of $6, then the warrants would be selling at a premium of