1. Outline the relationship between return on assets (ROA), return on equity (ROI), and the equity multiplier (EM). Determine whether these ratios are high or low during an economic expansion.
2. Explain, using a written and graphical explanation, the payoff from buying a put option.
3. Suppose the country of Bulgaria is considering on entering the Euro club. What should the Euro regulators look for and monitor to prevent a Euro crisis for Bulgaria when Bulgaria is in the Euro club?