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1. What sustainability strategies might you recommend for the industry sector in which you work, or intend to work? (These recommendations should be different from or at least much more detailed than those listed in the answer to the previous question.) Explain why you would make these recommendations. Consider time frames, likely effectiveness and costs.

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3. Binomial tree and option pricing. A stock's price S is $100. After three months, it either goes up and gets multiplied by the up factor U = 1.10, or it goes down and gets multiplied by the down factor D= 0.90. Options mature after T = 0.25 years and have a strike price K = 100. The continuously com- pounded interest rate is 2% for all maturities. Answer the following questions. (a) Calculate the value of the call option using no arbitrage valuation. (b) Demonstrate how you could make arbitrage profits when a trader quotes a call price of $7. ) Calculate the value of the call option using risk-neutral valuation. (d) Calculate the value of the put option using no arbitrage valuation. (e) )Demonstrate how you could make arbitrage profits when a trader quotes a put price of $3. (f) Calculate the value of the put option using risk-neutral valuation. (g) Show the values of call and put options in (c) and (f) satisfy the put-call parity.

4. Post-GFC how have major central banks been conducting monetary policy to achieve their objectives?