1.

You sell one Tencent call option and sell one Tencent put option. The exercise price is $45.00, the call premium is $1.45, and the put premium is $4.50. Your strategy will pay off only if the stock price is ________ at maturity.

		between $45.50 and $51.45
		between $44.05 and $55.95
		either lower than $44.05 or higher than $55.95
		either lower than $45.50 or higher than $51.45
		none of the above

2.

A bond issued by Injae Company currently has a YTM of 8.25% and a modified duration of 2.85. You believe that the Fed is about to increase interest rates by 258 basis points. Your predicted percentage price change for the bond based on modified duration only is ____________.

		+7.35%
		-7.35%
		+7.96%
		-7.96%
		None of the above