A$.$ A call option with exercise price $$10$ is expiring today. If the underlying asset is worth $$13,$ the payoff of the call option is

B$.$ Give $4$ examples of fixed income.

$$

$q,$

$q,$

C$.$ An underpriced stock provides an expected return which is $$ required return based on the capital asset pricing model $($CAPivi$).$

D$.$ A short sell generates negative returns for an investor when the price $$

E$.$ Consider the following two investment alternatives: First, a risky portfolio that pays a $10\%$ rate of return with a probability of $60\%$ or a $6\%$ rate of return with a probability of $40\%.$ Second, a Treasury bill that pays $3\%.$ The risk premium on the risky investment is $$

F$.$ Security $x$ has an expected rate of return of $11\%$ and a beta of $1\mathrm{.}1.$ The risk$-$free rate is $4\%,$ and the market expected rate of return is $14\%.$ According to the capital asset pricing model, the expected return on security $x$ is $$ so that security $x$ is $$ priced. $q,$ C$.$ rest $,$

G$.$ You purchased $400$ shares of Avon Barksdale Corp $($ABC$)$ common stock on margin at $$100$ per share. The initial margin is $50\%$ and the maintenance margin is $30\%.($Assume the stock pays no dividends and ignore interest on the margin loan.$)$

The amount you borrowed from the broker is $q,$ You will get a margin call if the stock drops below $q,$