Please be quick to solve all questions.

Q1:

You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $56. What is your net profit on this option if stock price is $47 at expiration

Q2:

You purchase a TIP note with an original principal amount of $1,000,000 and a 7 percent annual coupon (paid semiannually). What will the first coupon payment be if the semiannual inflation over the first six months is 1 percent? (round your answer to 2 decimal places)

Q3:

your answer to 2 decimal places) Suppose the current dividends on a stock are $4.9 per share and dividends are expected to increase by 2% per year, forever. If the required rate of return is 8%, what is the value of the stock? (round)

Q4:

Suppose a stock index contains the stock of 3 firms: A, B and C. The stock prices for the three firms are $70, $78 and $38, respectively. The firms have 130 million, 177 million and 94 million shares outstanding, respectively. If the index is value-weighted, calculate its initial value (round your answer to 2 decimal places)