Question
1. What is the price and bond equivalent yield for a treasury bill that matures on August 29 1996 (leap year), has 90days to maturity
1. What is the price and bond equivalent yield for a treasury bill that matures on August 29 1996 (leap year), has 90days to maturity and has a bank discount rate of 5.02%?
Answer : Price = $9874.50 R BEY = 5.17%
2. If a stock is at $120 at expiration, and assuming no transaction costs, what is the profit or loss on a long call with a strike price of $140 and
a cost of $1?
Answer: -$100
3. If a stock is at $120 at expiration and assuming no transaction costs, what is the profit or loss on a short with a strike price of $140 and a cost of $5?
Answer : -$1500
I have 3questions. I have answers but I dont know hot to get these numbers. Please give me step-by step solution.
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