99. You purchase one IBM July 132 call contract for a premium of $11. You hold the option until the expiration date, when IBM stock sells for $137 per share. You will realize a ______ on the investment. a. $500 loss b. $600 loss c. $600 profit d. $500 profit

93. You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.

Year	Beginning of Year Price	# of Shares Bought or Sold
2008	$125	300bought
2009	$130	250bought
2010	$126	275sold
2011	$129	275sold

What is the geometric average return for the period?

a. 2.11% b. 1.59% c. 1.06% d. .79%

96. The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 14% and its expected EPS is $7. If the firms plowback ratio is 40%.

a.	Calculate the growth rate. (Input your answer as a nearest whole percent.)

Growth rate

%

b.	what will be its P/E ratio? (Do not round intermediate calculations.)

P/E ratio