1. You purchase one Microsoft June 72 put contract for a premium of $.90. What is your maximum possible profit?

potential profit =

2. City Street Fund has a portfolio of $462 million and liabilities of $12 million. a. If there are 50 million shares outstanding, what is the net asset value?

Net asset value =

b-1. If a large investor redeems 1 million shares, what happens to the portfolio value? (Enter your answer in millions.)

portfolio value decreases to ________ million

b-2. If a large investor redeems 1 million shares, what happens to shares outstanding? (Enter your answer in millions.)

shares outstanding decreases to _______ million

b-3. If a large investor redeems 1 million shares, what is the net asset value?

net asset value =