5. Briefly define the following option strategies (2 marks each =8 marks)

5.1. Protective put

5.2. Covered call

5.3. Straddle

5.4. Spread

6. The manager of a large portfolio includes $100 million worth of long-term bonds paying an average coupon rate of 7%. The manager believes that interest rates are about to rise. Explain n how he can address his concerns using interest rates swaps. In your answer, include a clear definition of an interest rate swap (5)