Question: Bond Math: Based on the information provided, what is the current estimated gain/(loss) of the bond? Duration = 3.24 Convexity = -2.52 Current Book Value

Bond Math: Based on the information provided, what is the current estimated gain/(loss) of the bond? Duration = 3.24 Convexity = -2.52 Current Book Value of Bond = $6.5 million Current (Base Case) Market Value of Bond = $5.2 million -$1.2 Million $1.2 million -$1.3 Million $2.1 Million None of the above D Question 16 2 pts Purchasing Call Options: A call option on Maine stock specifies an exercise price of $58. Today the stock's price is $54 per share. The premium on the call option is $3. Assume the option will not be exercised until maturity, if at all. What is the breakeven point of the option? $58 $60 $55 $57

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