32. Suppose that Stock A has volatility 20% and stock B has volatility 30%. Correlation is -1. What is the volatility of a portfolio of equal weights between the two stocks? A. 0.25% B. 5.00% C. 10% D. 15% 33. On Monday March 11, 2019 the 1-Year USD Libor Rate is 2.8636% while the 1-year Euro Libor Rate is -0.1749%. Currently the Euro/USD spot exchange rate sits at 1.1241. The Uncovered Interest Rate parity implies that the expected 1-year spot EUR/USD exchange rate is going to: A. depreciate to 1.0909 B. appreciate to 1.0909 c. appreciate to 1.1583 depreciate to 1.1583 34. Suppose you have the following: stock price risk free rate maturity time to expiration vol div yield Conv Ratio Credit Spread Coupon What is the up step, down step, probability of the stock increasing at the next node (p), and probability of the stock decreasing at the next step (1-P) (hint: p=(e^(r*t)-d)(u-d)): A. 1.28; 0.77; 0.51; 0.48 B. 0.77; 1.28; 0.48; 0.51. c. 1.34; 0.74; 0.49; 0.51 D. 0.74; 1.34; 0.50, 0.49