Major function of investment banking

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1. Which of the following Is not a major function of investment banking?

a. Proprietary Trading

b. Synthetic Securities, or Financial Engineering

c. Market Making

d. Managing large equity mutual funds

2. A stock has a market price of $25 and a standard deviation of returns of 24 percent. The $25 call option matures in 4 months and the risk-free rate is 2.89 percent. N(d1) is .555198 and N(d2) is .500096. What is the value of the call option per share of stock?

$1.71

$2.16

$1.86

$1.50

$1.62

Reference no: EM131900620

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