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1. You purchased a bond at par with an accrued interest of 1%. The coupon is 9% semi-annual payment with 5 years remaining maturity. What’s the annualized yield of the bond?

2. The premium paid for an American call option, with a strike price of $100 was $2.50 per contract. What’s the P&L per contract if the option is exercised at the current spot price of $110?

3. You short 2 gold futures contracts at $1,500. The current settlement price of the gold futures contract is $1,800. What’s the mark-to-market on your position?

Financial Management, Finance

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