1. Calculating Cost of Preferred Stock Universal Golf Trust has an issue of preferred stock with a $20 stated dividend that just sold for $30 per share. What is the trust’s cost of preferred stock? Cost of Preferred Stock: _____________%
2. A stock`s current price is $30. A put option written on this stock has the exercise price at $32. The time to maturity of this put option is 2 years, and the risk-free rate is 5% per year. If currently, this put option is selling at $2.1, please find the implied volatility of the stock.
Use Excel