Mary wrote a 40 call on ABC stock at a price of? $275. She does not own any shares of ABC. Mary has
I. limited her losses to? $275.
II. unlimited loss potential.
III. limited her gains to? $275.
IV. unlimited profit potential.
A. II and III only
B. I and III only
C. II and IV only
D. I and IV only
2. A? $1,000 par? value, 5% annual coupon bond matures in 4 years. The bond is currently priced at? $965.35 and has a YTM of? 6.0%. What is the Macaulay? duration?
A. 4.00 years
B. .43 years
C. 3.68 years
D. 2.81 years