l_. Inv. Alternative Payoff and probability 1 sure 8% 2 50-50 chance of 6% and 10% 3 50-50 chance of 4% and 12% a. Rank investment alternatives, from best to worse, for a risk-neutral investor b. Rank investment alternatives, from best to worse, for risk-averse investor A Pick only one of the following two questions: ' What are the major components of an investor profile survey/questionnaire? ' Name two examples for the use of derivative securities combined with the underlying assets. With one sentence for each, describe what the objective of the position is. 3._ Writing a call option pays off as long as the underlying asset's price stays below the strike price. Similarly, buying a put option also pays off when the underlying asset's price is below the strike price. Do they represent the same expectation about the underlying assets price? Why/why not? 5 Stock XYZ is currently trading at $50, and the annual interest rate is 5%. The stock price is expected to either appreciate 10% or depreciate 8% each time it changes. What is the market value of a call option