3. Which of the following is most likely to be true if prices reflect all information efficiently, including private information? A) one can earn extraordinary returns on a routine basis B) one can find arbitrage opportunities on a routine basis C) stock investments are positive net present value projects over the long-term D) stock price changes are unpredictable by public information E) the market is semi-strong form efficient

7. Generally each equity options contract represents the right to buy/sell 100 shares the underlying stock. If at expiration, the underlying stock price is $35 per share, what is the total intrinsic value of long a put with an exercise price of $45 and short a put with an exercise price of $30? A) -$500 B) $0 C) $1500 D) $500 E) $1000