1. Why might a dealer quote a chain of options prices whose implied volatilities results in “volatility smirk”?

2. One year ago, you purchased a stock at a price of $55.78 per share. Today, you sold your stock at a loss of 18.71 percent. Your capital loss was $12.80 per share. What was the total dividends per share paid on this stock over the year?

3. You own a stock that had returns of 12.78 percent, −16.46 percent, 22.04 percent, and 20.36 percent over the past four years. What was the arithmetic average return for this stock?