Jamie wrote a nine-month put on Beta stock. The strike price…

Jamie wrote a nine-month put on Beta stock. The strike price was $25 and the market price of Beta stock at the time the option was written was $24. The total price of the option contract was $150. At what market price will Jamie just break-even on this investment? Ignore transaction costs and taxes.

The risk free rate is 3%. The expected rate of return on the…

The risk free rate is 3%. The expected rate of return on the market is 10%. Betas and the expected rates of return for four stocks are as follows.: BWI 0.9 , 10%; ORH 1.0, 10%; ORL 1.4 , 12.6%, and DEL 1.5, 18%. Based on a comparison of each stock’s expected return versus its required return, which of these stocks should not be purchased?