7.

As the Chief Investment Officer of Big Time Returns Inc., you need to determine the weighted probability of returns of the firm's $42 million allocation to crypto investments. (Show calculations for each question)

Below is a probability table of potential returns for the firm's crypto investment:

Return	Probability
170%	2.14%
137%	2.61%
58%	4.00%
34%	23.87%
8%	29.13%
-19%	22.00%
-31%	8.50%
-86%	7.75%

1. Calculate the weighted probability of returns (show the calculations). The answer should be both a percentage return and a dollar amount either gained or lost.
2. Based on the above table, what is the maximum dollar amount the portfolio could return?
3. Based on the above table, what is largest dollar loss the portfolio could experience?

8.

You are an actuarial for a defined benefit plan. In a given year, interest rates fall by 425 basis points (4.25%) and equity prices are flat. From an actuarial perspective, discuss the effect of this scenario on a defined benefit pension plan that is 60% invested in equities and 40% invested in bonds.

9.

Options are known to be a wasting asset.

3. Any wre onions, witered the rest derives he rate of change of the option's

premium value?

C. If you are long an option is the value of this "Greek" usually positive or negative and

1. A call option delta is 0.57. What is the delta of a put with the same expiration and strike price ?
2. A call option delta is 0.61. What is the probability your call option will expire in-the-money?