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22-30 please ne call is trading at $90, while the put is trading at $ss, Geogle's closing market price ist ket price? Prevailing interest rate

22-30 please image text in transcribed
ne call is trading at $90, while the put is trading at $ss, Geogle's closing market price ist ket price? Prevailing interest rate in the market was unchanged during the day B) Greater than C) Lesser than D) None of the above 'a A bond has a par value of $1000, lays a coupon of 6% annually, and has S years to maturity, if the bond is ading at a discount (ie. price of the bond is less than $1000), the prevailing interest rate is B) Greater than 6% A) Less than 6% C) Insufficient data 23. Bob owns four bonds: bond-1 has maturity year, bond-2 has maturity S years, bond has maturity 10 years. and bend -4 has maturity 20 years. All other characteristics of the bonds are identical. If the prevaling interest rates rise from 5% to 10%, which bond suffers maximum loss in value? A) 1 yr maturity bond )Syr maturity bond CJ10yrmaturny bond D) 20 yr maturity bond 24. In Question 23, suppose all the four maturity bonds have the same price when interest ra est rates rise to 10%, what is the relation between the prices of the bonds? tes are 75%, when data on two puts (Put-1 and Put-2) which have identical characteristics-except that one put was on a stock with lower price compared to th 25 You have other. Let the prices of Put1 and Putz be p1 and p2.f p written then A) Put-1 was written on the stock with lower price C) Insufficient Data to decide B) Put-2 was written on the stock with the lower price D) None of the above 26, Microsoft bonds paying a 6% coupon rate with semi-annual payments currently sell at par value, what coupon rate would they have to pay in order to sell at par if they paid their coupons annually? A)6% B) 6.09% C) 12% D)7.15 % 27. You buy an 8 year S1000 par-value bond today that has a 6% yield and a 6% annual coupon payment. One later (ie, the bond now has 7yrs to maturity), suppose yields have risen to 7%. Your holding period return over this one year period is A) 1.12% C) 0.93% D) 0.61% B) 3.2% 28. All else equal, a zero coupon bond of high maturity hasprice than a zero coupon bond of low maturity C) Sometimes higher, sometimes lower D) Insufficient data B) Lower A) Higher 29. Three put options on a stock have the same expiration date and strike prices of $s0, $55, and $60. The market prices are $4, 55, and $9, respectively. Xi buys the $50 put, buys the $60 put and sells two of the $55 puts. For what range of stock prices would this trade lead to a loss? A) less than $57 or greater than $53. C) greater than $57 or less than $53. B) greater than $63 or less than $47. D) greater than $60 or less than $50. 30. Sonia checked the price of Tesla's 5 year maturity at-the-money calls and puts at 10am in the morning today and they were $60 and $40. Tesla stock price was at $750. At 10.30am, Tesla's stock price was still at $750 but the call prices had spiked up to $75 while the put price had fallen at $30. What can Sonia deduce about the movement of interest rates in the market in the half hour (10am to 10.30am)? B) Rates went up D) None of the above A) Rates went down C) Rates were flat

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