9- You purchase one July 120 call on MBI stock for a premium of $5.00 when the price of MBI stock is $122.50. Your call option is

a) In the money

b) At the money

c) Out of the money

d) Worthless

e) Priceless

10- You purchase one July 120 call on MBI stock for a premium of $1.20 when the stock is priced at $122.50. Your maximum loss on this position equals:

a) $120

b) $122.50

c) $100

d) $250

e) unlimited

11- You purchase one September 120 put on MBI stock for a premium of $1.50 when the price of MBI stock is $122.50. You hold the option until the expiration day, and then MBA stock is selling for your profit/loss equals:

a) -$150

b) -$50

c) 0

d) +$50

e) +$150

13- ExxonMobil earned $10.80 in EPS last year. ExxonMobil has recently adopted a long term target to pay out 55% of all future earnings as dividends. ExxonMobils dividends and earnings are expected to grow at a constant rate of 4% in the future. You require an 8% rate of return on stock investments of similar risk. What is your estimate of the market value of ExxonMobil stock? Closest to:

a) $121

b) $148

c) $154

d) $176

e) $270

14- if you want to measure the performance of your investment in a fund, including the timing of your purchases and redemptions, you should calculate the ___________.

A) Geometric average return

B) Dollar-weighted return

C) Time weighted return

D) Standard deviation of returns

E) Correlation of the returns