Please select all of the correct answers, thank you :)

1. what will be the effect on the number of outstanding shares and share price of a 25% stock dividend:

a. outstanding shares= 1500,000 shares; shareprice = US80

b. outstanding shares= 1500000 shares; shre price US=66.67

c. outstanding shares= 1250000 shares; share price US80

d. outstanding shares= 1250000 shares; share price us95.00

2. on November 13, al buys a july futures contract on 100 tons of soybean meal at a price of $172.0 a ton. On the same day, bob sells this futures contract at the same price. On November 14, the july ontract is trading at $174.2 a ton. Given the contract is marked to market, what payments if any, need to be made on the 14^th? (ignore transaction costs)

a. al pays the clearing house $220 and the clearing house pays bob $220

b. bob pays the clearing house $220 and the clearing house pays al $220

c. al pays the clearing house $172 and the clearing house pays bob $174.2

d. none, no payments are made until July

3. what is the future value of $5000 invested for 4 years at 7.5% interest compounded continuously?

a. 6250.00

b. 6321.89

c. 6587.12

d. 6677.35

4. if the volatility of the underlying asset decreases, then the _________

a. value of the put option will decrease, but the value of the call option will increase

b. value of both the put and call option will increase

c. value of both the put and call option will decrease

d. value of the put option will increase, but the value of the call option will decrease

5. which of the following are normal characterisitics of a financial lease?

I. Maintenance of the leased asset is the responsibility of the lessee.

II. the lease is generally cancellable by the lessee prior to the expiration date.

III. financial leases are generally fully amortized.

IV. the lessee usually has the right to renew the lease at the end of the initial lease period.

1. I,III, and IV only
2. II,III, and IV only
3. I and II only
4. I,II,III and IV