1. What is the cost of implementing the straddle strategy at the start of the first year using options with the strike price of $51? (Hint: Go for partial credit here even if you were lost on the previous two questions.)
2. Discuss the relationship between external financing and growth of a firm. Including a discussion of how financial policy of a firm should encompass policy addressing the firm's internal growth rate, sustainable growth rate, and detriments to growth.