1a) What is the future value of the cost of 100 shares of ABC, Inc. stock 120 days from today given that the price is $38.00 and a $16.00 commission per transaction exists? The risk free interest rate is 4.5%.

a) 3759

b) 3816

c) 3857

d) 3874

1b) When an investor adds a bond to their portfolio, we can say:

a) The payoff changes but the profit does not change.

b) The payoff does not change but the profit changes.

c) Neither the payoff nor the profit changes.

d) Both the payoff and the profit change.

e) The profit decreases if its a short bond, and the profit increases if its a long bond.