1. You want to have $68,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.30 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Annual deposit       $

2. Assume that stock A is traded at $100 per share. A call option with an exercise price of $97 costs $7. A call option on the stock with the same expiration and an exercise price of $103 costs $3. Using these options what is the cost of entering into a long bull spread on stock A? what is the profit/loss for a long bull spread if the price at expiration of the options is quoted as $110?