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A firm just paid a $7.20 dividend. Analysts expect it to grow at a 6% annual rate. If the required rate of return is 13.5%.

  1. A firm just paid a $7.20 dividend. Analysts expect it to grow at a 6% annual rate. If the required rate of return is 13.5%. What price would we expect to pay for the stock today?

$101.76

  1. The S&P 500 spot price is 4,379.00 The annual risk-free rate is 4.2% and the annual dividend yield on the S&P 500 Index is 5.1%. What is the 11-month E-mini futures price that satisfies parity?

  1. You posted the required 50% margin when you purchase 1,400 shares of stock for $135.40 a share. If the stock price falls to $125.25, what will be the value of your equity in your trading account?

  1. On 1/22/2019 Treasury bonds sell at a quoted price of 93.125. The bonds have a 3.50% coupon and mature on 4/27/2028. What is the bonds YTM on 1/22/2019?

  1. You sell short 600 shares of stock for $102.80 per share. You take full advantage of the initial margin on short sales (150% (50%). If the maintenance margin in 130% (30%), what is the lowest MMD price at which you would receive a margin call?

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