1. A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 11% of its $1,000 par value. If the last interest payment was made 2 months ago and the coupon rate is 6%, the invoice price of the bond will be _________.
A. $1,140
B. $1,10
C. $1,180
D. $1,200
2. Why would an investor want to buy/sell puts or calls? When would each of them have value and when would they have no value?
A. Buy put
B. Sell put
C. Buy call
D. Sell call