(5 marks) Calculate the probability of a failed issue if the current rights-on stock price is normally distributed with mean of $60 and standard deviation of $10.

c. (6 marks) Just before the rights expire the stock price is $75. Calculate the value of a right and its percentage increase with respect to its value in (a). Calculate the stocks percentage increase and compare it to the rights percentage increase.

d. (4 marks) Show that the holder of N rights is indifferent to exercising or selling them in (c).