6. a. You are long a March 50 call for a premium of 5. Ignoring transaction costs, what is the break-even price of this position? 45 b. 50 55 d. 60 c. 7. a. A hedge ratio of 0.55 implies that a hedged portfolio should consist of Long 0.55 call for each short stock b. Long 0.55 call for each short call Short 0.55 calls for each long stock d. Long 0.55 shares for each long put None of the above c. e. 8. 8 a. You obtain the following data for Year 1: revenue = 43; variable costs = 30; depreciation = 3; tax rate - 30%. The operating cash flow for the project in year 1 is: 7 b. 10 13 d. 16 c. 9. a. Which of the following statements is false? In sensitivity analysis, all variables must have zero correlation between them. b. According to the IRR rule, a project should be accepted if its IRR exceeds the opportunity cost of capital. In scenario analysis, several variables are changed at the same time. d. According to the NPV rule, a project should be accepted if its NPV is positive. None of the above C. e