4) If we know that a put option with strike price $16.5 of a stock with the sport price $18.4 for 6 months (suppose we have a quarterly 0.4% risk-free rate) costs 2.3$, what is the price for a call option with the same properties? 5) We have bought a call option for 1.5 with a strike price of 16.8 with maturity time being three months. The risk-free monthly interest rate 0.3%. a. Calculate the payoff after 3 months and the breakeven price. b. Calculate the price of a put option with the same parameters, if the actual spot price is 18. optional question from section A. Section B contains 2 optional questions. You must select and answer any one. Section A Question 1 - 25% (compulsory) Solve the following exercises with the use of the corresponding formulas. 1) Consider a bond with Face Value of 2000, with maturity time 1.5 years and coupon rate 2.2% with quarterly coupon payments and 3% discount rate. Determine the duration of the bond. Calculate the 9-month forward price of it at 2% risk-free rate. 2) Calculate the 6-month forward price of 5000 stocks of a company A, if the spot price is 25, it gives a 0.1% monthly dividend, and we have a monthly 0.3% of interest rate. 3) What is the 4th year forward rate of an investment, if we know that the 3-year spot rate is 6,100% and the 4-year spot rate is 8,200%. What would be the 5-year spot rate, if it goes on and the return of the 5th year equals the return of the 4th year. 4) If we know that a put option with strike price $16.5 of a stock with the sport price $18.4 for 6 months (suppose we have a quarterly 0.4% risk-free rate) costs 2.3$, what is the price for a call option with the same properties? 5) We have bought a call option for 1.5 with a strike price of 16.8 with maturity time being three months. The risk-free monthly interest rate 0.3%. Activate Co to Settir Solve the following exercises with the use of the corresponding formulas. 1) Consider a bond with Face Value of 2000, with maturity time 1.5 years and coupon rate 2.2% with quarterly coupon payments and 3% discount rate. Determine the duration of the bond. Calculate the 9-month forward price of it at 2% risk-free rate. 2) Calculate the 6-month forward price of 5000 stocks of a company A, if the spot price is 25, it gives a 0.1% monthly dividend, and we have a monthly 0.3% of interest rate. 3) What is the 4th year forward rate of an investment, if we know that the 3-year spot rate is 6,100% and the 4-year spot rate is 8,200%. What would be the 5-year spot rate, if it goes on and the return of the 5th year equals the return of the 4th year. 4) If we know that a put option with strike price $16.5 of a stock with the sport price $18.4 for 6 months (suppose we have a quarterly 0.4% risk-free rate) costs 2.3$, what is the price for a call option with the same properties? 5) We have bought a call option for 1.5 with a strike price of 16.8 with maturity time being three months. The risk-free monthly interest rate 0.3%. a. Calculate the payoff after 3 months and the breakeven price. b. Calculate the price of a put option with the same parameters, if the actual spot price is 18. Activate Wi Co to Settings
