An option whose payoff are determined by the average price of the underlying security over several predetermined periods of time, is an example of

	a.	Call option
	b.	Swaption
	c.	Exotic option
	d.	Put option

According to Milton Friedman, a model should be evaluated only in terms of its

	a.	Ease of use
	b.	Completeness
	c.	Explanatory power
	d.	Predictive power

Compute the duration of a bond with the following cash flows and a yield to maturity (YTM) of 12%.

Year,t	Cash Flow
1 2 3	90 90 90
3	1000

	a.	2.85 years
	b.	2.75 years
	c.	3.00 years
	d.	2.95 years

Kindly answer these questions above with explanations