1. Choice questions (5 points for each question, 30 points total) 1. Josie buys 150 shares of stock that has an ask price of $ 40 per share. She immediately sells the shares. The broker's commission is $12 per transaction. Josie's round trip transaction cost is $ 46.50. What was the bid price?( (A) $39.69 (B) $39.77 (C) $39.85 (D) $40.00 6 th ( ( (1 ( (c 2. Jason enters into a long forward based on asset A, with a forward price of $ 85. He also enters into a short forward based on asset B, with a forward price of $95. At a spot price of S for both assets, his payoffs under the two contracts would be the same. At a spot price of S+$8, his payoff under contract A would be X. Determine X. ( (A) $1 (B)$3 (C) $5 (D) $ 13 ) II. 0