1. The current price of a stock is $58.07. If dividends are expected to be $1.00 per share for the next six years, and the required return is 7?%, then what should the price of the stock be in 6 years when you plan to sell? it?
The price 6 years from now will be $?.
?(Round your response to the nearest? dollar.)
2. Compute the net returns from exercising a Call Options ; assuming a strike price of 100 and a premium rate of 5, compute the net returns for ending prices for 50; Plot the net returns against ending price.
Please show work.