A call option has an exercise price of $60. 7. i. What is the value of the call option at expiration if the stock price is $45? ii What is the value of the call option at expiration if the stock price is $65? Suppose you have $5,000. Based on the rates of 120 Yen, how many 8 1USD Japanese Yen can you buy? Suppose an investment will cost $10,000 initially 9 and will generate the following cash flows: $7,000 $5,000 $4,000 Year 1: Year 2: Year 3: The required return is 20%. Should we accept or reject the project? 10. Suppose you have a 10% bond that pays annual coupon and with mature in 10 is $1,000, and the yield to maturity on similar bond is 8% The bond is also convertible with a conversion price of 100. The stock is years. The face value currently selling for $120. What is the minimum price of the bond