QUESTION 12 An option on Vanderlay Industries has three months until maturity with a strike of $98; the cost to purchase this option today is $5. At expiration in three months, Vanderlay's stock is trading at $100. At maturity, what is the profit from this trade? O A $3 O B. $0 O C. +$2 OD. +$3 QUESTION 13 You want to purchase some shares of Green World stock but need a 15 percent rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant $0.90 annual dividend per share? O A $5.40 O B. $6.00 O C. $6.90 OD$7.20 O E. $7.80 QUESTION 14 Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent annually. What is one share of this stock worth to you today if your required rate of return is 15 percent? O A. $14.67 OB. $15.22 O C. $19.56 O D. $20.29 O E. $20.59