True or False? Asset prices follow a random walk in a weak form efficient market, but not in a semistrong form efficient market. Select one: a. False b. True You are considering whether to sell (write) a put option on crude oil with a strike price $34 at a premium of $1.5. What would be your maximum possible profit from this trade? a. infinite b. 1.5 C. 34 d. 32.5 e. zero I expect an equity to pay its annual dividend of $2 per share in exactly one year's time, with dividend growth of 1.1% per annum thereafter. My RRR for this stock is 5.4%. The risk-free rate is 1%. How much should I be willing to pay per share? a. 60.6 b. 37.7 c. 46.5 d. 181.8 e. 37.0 The carry trade between the Japanese Yen and the Australian Dollar involves borrowing in Yen at the Japanese risk-free interest rate of 2% and lending at the Australian risk-free rate 7%. If you had taken out this carry trade at these interest rates one year ago, what profit would you now have made on this trade? a. 2% b. 5.0% c. Impossible to tell with the information provided d. 7% e. 5.0%