Final FIN 35 1. Using for deliver nug the pizza example, let us asume you purchase 5 small cheese pizzas for S40 ery in I hour. After 30 minutes you sell a contract to sell 5 small cheese pizas for 342. How did you end your futures contraer? A. Delivery B. Cash Cofetting positions 12. A portfolio manager has a $109 million portfolio that tracks the S&P 500, Currently the Sep 500 is trading at $1,011. How will the manager hedge the ponfolio using index futures? R Sell 431 futures contracts B. Buy 431 futures contracts C.Sell 1078 futures contracts D. Buy 1078 futures contracts VA 13. Lauren has a margin account and deposits $46,255. Assume the margin requirement is 42.00% and Gentry Shoe Co. is selling at S12. What is the value of Lauren's equity if the stock price falls to$30? 49, 27.20- A. $19,427 B. $41,271 C, $40,205 D. $39,372 14. Rock Solid has a stock portfolio worth $100 million, which tracks closely with the S&cP 500. The portfolio manager fears that a decline is coming therefore buys put options to protect the entire portfolio when the S&P 500 was $1,005. The strike price the entered into was at $1,005. Suppose after a year the Sep 500 is $955 and the portfolio is worth $91 million. The options premium is $1 million. What is the value of the total position? A.$90,000,000 B. $91,990,050 C. $95,975,124 D. $94,975,124 15. The expected dividend is $2 for Stock A. The growth rate is 5%. The required rate of return is,11%. Based on the Dividend Discount Model what is the estimated price of Stock A? A. $32.33 B. $33.33 C $36.00 S35.00