1. Suppose the stock price of Intel is $63 and call price is $4 with a strike price of $65. If you write a covered call option, and Intel stock rises to 71$, the profit or loss of your strategy is being what?
2. Suppose you buy a Merck put for $2.50 which matures in September with a strike price of $50. Merck is currently trading at $51.75. If the stock price of Merck falls to $46, the rate of return of your put option is what?
3. A coupon bond that pays interest of $100 annually has a par value of $1000 matures in 5 years and selling today at a $72 discount from par value. The yield to maturity on this bond is what?