1. Does volatility clustering help researchers predict stock market behavior better?

2. What is a callable bond, who "calls" a bond, and under what circumstances?, In what ways are preferred shares like debt and in what ways are they like common equity

3. A call option on ABC Corp. stock with an exercise price of $45 and an expiration date 1 year from now is worth $2.7 today. A put option on ABC Corp. stock with an exercise price of $45 and an expiration date 1 year from now is worth $2.20 today. The risk-free rate of return is 8%, and ABC Corp. pays no dividends. The stock should be worth __________ today.