Question: Hi could you answer each question with steps showing how to solve please? 8. Mecole discovered a year ago some interesting patterns on the stock

Hi could you answer each question with steps showing how to solve

Hi could you answer each question with steps showing how to solve please?

8. Mecole discovered a year ago some interesting patterns on the stock price of his three favourite companies. Over this period, he has been able to benefit from it by buying the stocks every 3 Mondays and selling the next day, as he has identified that this sector of the economy increases at the beginning of every 3 weeks. Based on this information, which of the following is correct? I. The weak form of efficiency is being violated. II. The semi-strong form of efficiency is being violated. III. The strong form of efficiency is being violated. a) Only I is correct. b) Only I and II are correct. c) Only II is correct. d) Only II and III are correct. e) None of the above. 9. Paul purchased two shares of one company at $32 today. At the same time, he bought a call option (with X=38 ) for a premium of $3.50, sold two calls (with X=43 ) for a premium of $2.50, and bought a put (with X=30 ) for $4. a) What is Paul's profit (or loss) if the market price of the shares is $46 at the time of expiration of the options? 10. DC Inc. has an investment opportunity (Project A) that requires a cash outlay of $14,000 today. They estimate that they will receive in exchange $5,600 in year 1,$5,900 in year 2 , and $7,600 in year 3 . a) What are the IRR and the NPV of Project A? b) If the discount rate is 12%, would you invest in Project A? c) Let's imagine that we had a second project (Project B) that has an IRR of 18%. If the crossover rate between these two projects is 13%, which project would you choose when the appropriate discount rate is below that crossover rate

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