The strike price of a put option is the price

A) at which the underlying stock can be bought

B) an investor must pay for the options contract

C) at which the underlying stock can be sold

D) of the underlying stock at the time the options contract is created

Megan is the type of stock market investor who focuses on companies with low price/ book value, low price/cash flow and low price/sales. In searching for stock investments, she looks at a company's historical performance and attempts to find undervalued stocks. This information indicates that she is the type of investor known as

A) a value investor.

B) a premium investor.

C) a growth investor.

What is the current price of a $1,000, 6% coupon bond that pays interest semi-annually if the bond matures in ten years and has a yield-to-maturity of 7.1325%?

A) $920

B) $1,080

C) $1,030

D) $567

What is the yield-to-maturity of a $1,000, 7% semi-annual coupon bond that matures in 2 years and currently sells for $997.07?

A) 6.87%

B) 7.04%

C) 7.16%

D) Error 5

D) an earnings investor.