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

D. depreciate to 1.1583 34.

Suppose you have the following: S= stock price 50 r= risk free rate 4% T= maturity 5 t= time to expiration = vol 25% q= div yield 0 Conv Ratio 15 Credit Spread 4% Coupon 20 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.