What is your break-even stock price

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1. A preferred share of stock is currently trading for $45.50 on the New York Stock Exchange. If this instrument pays a dividend of $3.25 a year, what is its annual yield?

2. You buy a put option on a stock for a premium of $3.78. The current stock price is $54, and the option strike price is $45. What is your break-even stock price?

3. Assume the average market return over the next 50 years is expected to be 9.2%. If an investor contributes $13 thousand into an investment account today, pays 1.5% of assets under management for various fund and advisor fees, and waits for 50 years, what percentage of his final wealth has he sacrificed in fees?

Enter answer in percents.

Reference no: EM132047264

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