call . 6. Which of the following factors is not considered in the valuation of Current stock price b. Exercise price c. Risk free rate d. Volatility of underlying stock price e The foward price of the underlying stock annually. The bonds 7. The bonds issued by Stainless Tubs bear a 6 percent coupon, payable sem mature in 11 years and have a $1,000 face value. Currently, the bonds sell for S989 yield to maturity? A. 5.87 percent B. 5.92 percent C. 6.08 percent D. 6.14 percent E. 6.20 percent 8. A one year call option has a strike price of 60, expires in 6 months, and has a price of $2.5. If the risk free rate is 7%, and the current stock price is S worth? (Put Call Parity Problem) a. $5.00 b. $4.56 C. $5.50 d. $7.08 e. $7.54 55, what should the corresponding put be 9. Which of the following statements is CORRECT? A. All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds. B. All else equal, an increase in interest rates will have a greater effect on lower-coupon bonds than it will have on higher-coupon bonds. C. If a bond's yield to maturity exceeds its coupon rate, the bond is called an at-par bond. D. All else equal, an increase in interest rates will have a greater effect on the prices of short- term than long-term bonds 10. At what point would an investor be indifferent between a Drifton corporate bond yielding 12.5 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent? a. 6.05 percent b. 7.10 percent c. 8.15 percent d. 9.38 percert e. 16.27 percent You must show your work! Cell phone is strictly prohibited