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1. (10%) Use the table for the question(s) below. a) Consider an ETF that is made up of one share each of IBM, MRK, and C. The current quote for this ETF is $265.19 (bid) $265.24 (ask). Is there an arbitrage opportunity? b) Bid and ask prices of the ETF is updated. Now the quotes are 265.19 (bid) and 265.34 (ask). Is there an arbitrage opportunity? 2. ( 10% ) You are retired, have $264,500 in your savings, withdraw $2,000 each month, and earn 4.5 percent APR with monthly compounding. How long will it be until you run out of money? 3. (10%) You have an investment opportunity in the US that requires an investment of 200,000,000 Won (Korean Won) today and will produce a cash flow of $200,000 in one year with no risk. Suppose the risk-free rate of interest in US is 4% and the current competitive exchange rate is $0.0006 to 1 Korean Won. What is the NPV of this project? Would you take the project? 4. (10%) Your cost of capital is 0.80% per month. If a car dealer offers you either a 5 -year car lease with payments of $500/ month (60 payments in total at the end of each month) or a 4-year car lease with an upfront payment of $2000 and subsequent payment of