An analyst determines the following information about a semiannual coupon bond:

Par value $1,000 Modified duration 10 Current price $800 Yield to maturity (YTM) 8%

If the YTM increases to 9 percent, the predicted change in price, using the modified duration concept, is closest to __________.

A. -$80.00

B. +$10.00

C. +$80.00

D. -$10.00

One Gold futures contract trades in units of 100 ounces of gold, the minimum initial margin requirement is $9,000 per contract. Suppose you bought one contract at $1500/ounce using the $9,000 minimum initial margin and the price spiked to $1550/ounce on an active trading day. The daily percentage profit or loss in your margin account is a __________.

A. gain of 55.6%

B. loss of 3.33%

C. gain of 3.33%

D. loss of 55.6%

Given that a bond matures in 5 years with a coupon of 7% paid semi-annually and a yield to maturity of 9%, the current market price should be closest to __________.

A. $920.87

B. $870.63

C. $1,841.75

D. $1000.00

An Option contract that can only be exercised on the expiration date is called a (an) __________ option.

A. call

B. European

C. put

D. American