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A firm has P/E ratio of 12 and a projected growth rate on earnings of 8%, the firm's PEG ratio is ______ and indicates the

  1. A firm has P/E ratio of 12 and a projected growth rate on earnings of 8%, the firm's PEG ratio is ______ and indicates the stock is probably _________.

    PEG=0.7, overvalued

    PEG=1.5, overvalued

    PEG=0.7, undervalued

    PEG=1.5, undervalued

  2. If the S&P500 index is currently at 3,410 and the monthly risk-free rate and dividend yield for the market are both at 0.1%, then the 6-month S&P500 future contract should be priced at ___________ according to the spot-future parity relationship..

    3,400

    3,410

    3,420

    3,430

  3. The Eurodollar futures contract (ED) has contract size of $1 million, a tick size of 0.005% and a tick value of $12.50 per tick. If the initial margin is $300 and the maintenance margin is $250, how much additional deposit per contract does an investor have to make to the account (to keep the account open if fell below maintenance) if the price of the contract moves from $99.875 to $99.850 ?

    $50.00

    $125.00

    $0

    $62.50

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