1. A stock is trading at $87.50 a share, and you think it will probably go no higher than $90. So, you sell-to-open a $90 call and buy-to-open a $95 call. This is called a:
bear put spread
iron condor
bull call spread
bull put spread
bear call spread
2. Keller Cosmetics maintains an operating profit margin of 6% and asset turnover ratio of
1. a. What is its ROA? (Enter your answer as a whole percent.)
ROA %
b. If its debt-equity ratio is 1, its interest payments and taxes are each $9,700, and EBIT is $28,500, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.)
ROE %