1. How much would your parents have to deposit each month into an account that grows at a rate of 11% per year compounded bi-monthly if they want to have $74,000 at the end of year 4 to cover part of your college expenses? Assume no interperiod compounding.
2. Pricing of ADR Today, the stock price of Genevo Co. (based in Switzerland) is priced at SF80 per share. The spot rate of the Swiss fanc (SF) is $.70. A share of ADR of Genevo Co. represents two shares of its stock traded on SIX Swiss Exchange. What should be the price of the ADR?