1. An open end mutual fund owns 1000 shares of Krispy Kreme priced at $50. The fund also owns 2000 shares of Ben & jerry’s priced at $75, and 1000 shares of Pepsi priced at $65. The fund has 2000 of its own shares outstanding. The fund has 5.85% load charge. What is the net asset value of the fund’s share?
A) $140.25
B) $132.50
C) $265.00
D) $175.55
E) $125.18
2. Which of the following are used for hedging interest rate risk:
a) Financial futures
b) Interest rate swaps
c) Interest only (IO) securities
d) Principal-only (PO) securities
e) All of the above