1. Ambrin Corp. expects to receive $8,000 per year for 10 years and $9,500 per year for the next 10 years. What is the present value of this 20 year cash flow? Use an 9% discount rate. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round your intermediate calculations to the nearest dollar value.)

$77,074

$86,701

$112,315

none of these

2. A put option in which the stock price is $60 and the exercise price is $65 is said to be

a. in-the-money

b. out-of-the-money

c. at-the-money

d. exercisable

e. none of the above