1. When calculating the weighted average cost of capital, would it matter more if book values instead of market values were used for equity instead of debt? Please explain.
2. You buy a share of stock, write a one-year call option with X= $29, and buy a one-year put option with X = $29. Your net outlay to establish the entire portfolio is $27.70. What must be the risk-free interest rate? The stock pays no dividends. (Do not round intermediate calculations.)
3. Appreciate how futures and options can be used by companies to reduce risk.
4. Does dark pool trading in stock increasing the market quality? How it working?