Part of question 1

2.8346

5.3827

9.3027

10.9668

12.8761

NOt THE ABOVE

Question#2

Question 3

Find the present value of a 3-year zero-coupon bond with a $2,000 par value. Assume the annual market interest rate is 10%.

A$ 3,500.26

B$ 1852.52

C$ 2502.72

D$ 4023.85

E NONE OF THE ABOVE

Please provide the correct calculations

Question #13

The current price of American Airlines stock is $39. In the next year, this stock price can either go up by $12 or go down by $8. The stock pays no dividends. The oneyear risk-free interest rate is 6% and will remain constant. Calculate the risk-neutral probabilities of stock going up for this year .

A 0.271

B 0.375

C 0.483

D 0.517

E 0.625