1. Sam Investor purchased shares of Tardis Intertemporal on the open January 2 at $57.75 per share. He earned a dividend of $0.33 in January. Sam kept his dividend in cash - he did not reinvest it. Tardis Intertemporal closed at

January: $54.19

February: $55.47

March: $56.95

The total time-weighted rate of return for the calendar quarter is ______ % and the holding period return for the calendar quarter is _____%

2. An investment company has purchased $100 million of 10 percent annual coupon, 6-year Eurobonds. The bonds have a duration of 4.79 years at the current market yields of 10 percent. The company wishes to hedge these bonds with Treasury-bond options that have a delta of 0.7. The duration of the underlying asset is 8.82, and the market value of the underlying asset is $98,000 per $100,000 face value. Finally, the volatility of the interest rates on the underlying bond of the options and the Eurobond is 0.84.

Given this information, what type of T-bond option, and how many options should be purchased, to hedge this investment?

792 put options.

792 call options.

942 put options.

942 call options.

554 put options.