# TServices has a calculated beta of 0.9. The current risk-free rate is 2.11% and you expect the market return to

## Question:

TServices has a calculated beta of 0.9. The current risk-free rate is 2.11% and you expect the market return to be 15.42%. Based on the CAPM, what is the expected rate of return of the firm? Submit your answer as a percentage and round to two decimal places

An investor hedges a long position in 50,000 pounds of concentrated orange juice in June by shorting November orange juice futures contracts. The current spot orange juice price is $1.4549 per pound and the current November futures contract is 1.1645 per pound

What is the investor's initial basis in cents (dollars x 100)? Round your final answer to two decimal places (Ex. 0.00).

A 9.2% coupon bond with 17 years to maturity and a par value of $1,000 is currently selling for $835.89. What is the bond's current yield? Submit your final answer as a percentage rounded two decimal

Emery De stook is cumenty selling for $31.21. A 5-month call option on 100 shares of the stock with a strike price of $40.00 has a premium of $5.83 per share. The risk-free rate is currently 4%. According to put-call parity, what should the option premium on a 5 month Put with a $40.00 strike price be? Assume the options are European style. Round your final answer to two decimal places (Ex. $0.00).

Ein owns a bond with a Macaulay's duration of 7.9 years and a current yield to maturity of 9.31 percent. What is the approximate percentage change in the price of his bond if interest rate change by 52 basis points? Assume semi annual compounding.

Submit a percentage and round to two decimal places (Ex. 0.00%)

A common stock has an expected return of 10% and a standard deviation of 9%. The market has an expected return of 10% and a standard deviation of 9%. If the stock's returns and the markets returns have a correlation coefficient of -0.04, what is the stock beta? Round vour fmal answer to two decimal places (Ex. 0.00).

A stock is cumenty trading at 63.54. What is the intrinsic value per share for a call option that has an exercise price of $62.50? Round your final answer to two decimal places

A stock is currently trading at 14.74. What is the intrinsic value per share for a put option that has an exercise price of $12.75? Round your final answer to two decimal places (Ex. $0.00).

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