Question 1 (1 point) Given the following information, what would you expect to be the minimum price at which a 3 month futures contract for 100 bushels of wheat would be trading? The spot price of wheat is $8 per bushel. Storage and insurance costs for wheat are $.50 per 100 bushels, per month payable at the end of the storage period You can borrow money at 8% per year. O a) $817.5 Ob) $865.50 Oc) $814.50 d) $816.50 Question 2 (1 point) A company has 100,000 common shares issued and outstanding that currently trade at a price of $0.50 each. An investor owns 1,000 common shares of the company. The company completes a 1:5 reverse stock split. Which statement is correct? a) The company would have 500,000 shares outstanding after the consolidation Ob) The investor would have 200 shares after the consolidation. Oc) The price of each share after the consolidation would be $0.10. d) The percentage ownership of the investor has declined. Question 3 (1 point) What is the time value of a warrant with a market price of $2.25 and an exercise price of $55.00? The underlying common shares have a current market price of $56.50 a) $0 b) $0.75 Oc) $1.50 d) $3.75 Question 4 (1 point) Select the correct statement based on the following stock quote just after the market closed on Tuesday. 52-week Stock Div. High Low Close Change Volume High Low 12.55 9.25 BEC 50 10.65 10.25 10.35 +.50 6,000 a) The closing price for BEC on Tuesday was $10.85. b) The closing price on Tuesday was $0.50 higher than Monday's closing price. Oc) A total of 6,000 shares in BEC have traded this year so far. d) BEC traded as high as $12.55 on Tuesday