2. An index is based on three stocks. Using the information in the table below, calculate the index return assuming it is price-weighted. The divisor for the index is three. Stock Initial Price, Final Price, Shares (in millions) A $10 $12 30 B $250 $240 1 C $100 $105 5

8. Barrack buys a call option on Netflix stock. At the time he buys the option, Netflix stock is trading for $525. The option premium is $32 for a call option with a strike price of $530 and expiration in one month. Suppose on the expiration date that the price of Netflix is $529. What is Barracks profit or loss (in dollars)?

9. Barrack buys a call option on Netflix stock. At the time he buys the option, Netflix stock is trading for $525. The option premium is $32 for a call option with a strike price of $530 and expiration in one month. Suppose on the expiration date that the price of Netflix is $600. What is Barracks profit or loss (in dollars)?

10. Ebony writes a put option on Walmart stock. At the time she writes the option, Walmart stock is trading for $144. The option premium is $3 for a put option with a strike price of $140 and expiration in one month. What is the maximum dollar profit Ebony could potentially earn?

11. James buys a put option on Walmart stock. At the time he buys the option, Walmart stock is trading for $144. The option premium is $3 for a put option with a strike price of $140 and expiration in one month. On the expiration date, the stock price is $127. What the profit or loss (in dollars)?