any stock to be used should be usa stock

#1. Develop an economic model in support of your projection for expected return on the SP500 for the ten year period 2016-2026. You can use the Dividend Discount Model if you like, or some other economic model.

#2. Develop an equity screen find 25 undervalued stocks

#3. Take one of the undervalued stocks from your screen in #2 and prepare a financial analysis of this stock. That is, estimate the expected return on the stock and compare it with the required return using the CAPM. What is your estimate of alpha?

#4. Graph the profit/loss for the following options positions

Long at-the-money call with strike 40 and premium 2;

Short at-the-money put with strike 40 and premium 2

Combination of the long call and short put, both with and

Bull spread: buy call with strike 40 and premium 2;

and sell call with strike 44 and premium 1

Long straddle: buy call and put both with strike 40 and premium 3

Short straddle: sell call and put, both with strike 40 and premium 3

#5. Suppose the price of a non-dividend paying stock is 40 and can go to 36 or 44 in 1 period

Assume the risk free rate is zero for this period.

Find the value of a call option with strike 40

Find the value of a put option with strike 38

#6. You would like to speculate on a rise in the price of a certain stock. The current stock price is $29, and a three-month call with a strike of $30 costs $2.90. You have $5,800 to invest. Identify two alternative strategies, one involving an investment in the stock and the other involving investment in the option. What are the potential gains and losses from each?

#7. What is Quantitative Easing (QE)? What do you think are the primary effects of QE?

#8. The spot price of gold is $1200 per ounce. Assuming the one-year risk-free interest rate is 10% and the cost of storing gold is zero, what is your best estimate of the one-year forward price of gold?