14. Determine the annualized implied repo rate on a Treasury bond spread in which the March is bought at60 and the June is sold at 61.5. The March CF is 1.1 and the June CF is 1.14. The accrued interest as of March 1 is1.15 and the accrued interest as of June 1 is 1.3. (due to calculator precision, pick the closest answer) (Points : 3.84)

21% 23% 28% 35% 31%

Question 15. 15. A call option gives the writer (Points : 3.84)

the obligation to buy something the right to sell something the right to buy something the obligation to sell something none of the above

Question 16. 16. A call option priced at $2 with a current stock price of $30 in the marketand an exercise price of $35 would be worth (you don't own the stock)? (Points : 3.84)

$2 $32 $3 -$2 $35

Question 17. 17. A put option in which the stock price is $21.5 and the exercise price is $22 is said to be (Points : 3.84)

in-the-money out-of-the-money at-the-money exercisable none of the above

Question 18. 18. The option price is also referred to as the (Points : 3.84)

strike spread premium fee none of the above

Question 19. 19. You are the purchaser of a call option with $10 premium and $120 exercise price. You bought this option when the stock price was $130. If the stock price now is $120, what is the net cash flow to you if you exercise? (Points : 3.84)

-$5 $5 $10 -$10 0