1. You are convinced that Apple's stock will move down, but by no more than 10% over the next 3 months. Which of the following options strategies should you use?
A. spread
B. collar
C. straddle
D. covered call
E. protective put
2. Which of the following statements is false?
A. Bond prices and yields are inversely related.
B. An increase in a bond’s YTM results in a smaller price change than a decrease in yield of equal magnitude.
C. Prices of short-term bonds tend to be more sensitive to interest rate changes than prices of long-term bonds
D. interest rate risk is inversely rlated to the bond's coupon rate