Please provide the correct calculation

3. A $1,000 face value bond has a 6.0% coupon and pays interest annually. The bond matures in 4 years, and the annual market interest is 3%. What is the Macaulay duration?

1. Farma and French argued a small minus big factors portfolio mimics the macroeconomic risk factor By capturing the effect of business cycle because bigger stocks are more sensitive to business conditions True or False?

Question #2

Stocks with strong past performance over the past 2-12 months continue outperforming stocks with a poor past performance by about 1% per month .

True or False?

Question #3

The empirical evidence generally rejects the semi-strong form of market efficiency.

True or False?

Question #4

An option buyer collects the option premium

True or False?

Question #5

In a strong form efficient market, investors were not compensate for bearing risk because information of any kind, public or private, is an instantaneously impounded into prices

True or False?

Question #10

A $2,000 face value bond has a 6% coupon and pays interest annually. The bond matures in 2 years and the annual Market interest is 7%. What is the Macaulay duration?

1. 1.89734 YEARS

2. 1.94289 YEARS

3. 1.24368 YEARS

4. 2.17843 YEARS

5. NONE OF THE ABOVE

Question #11

You sell a call option on Tesla stock with an exercise price of $250. The option expires after 1 month. assume that the option premium is $25. What is the profit on this option is the stock price is $310 at expiration

1. -$60

2. -$35

3. $35

4. $60

5. None of the above

Question #12

You buy a CALL option on Tesla stock with an exercise price of $250 the option expires after one month. Assume the option premium is $30. What is the payoff on this option if the stock price is $200 at expiration?

1. -$70

2. -$40

3. $70

4. $40

5. None of the above

Question 15

Assume the following:

The price of a two-year call with the strike price of X is currently $4.

The price of a two-year put with the strike price of X is currently $5.

The current price per share of the stock is $23.

The stock does not pay a dividend.

The risk-free rate is 5% per year.

Using the put-call parity, what is the strike price of the put? In other words, find X.

a) $24.97

b) $29.00

c) $30.45

d) $31.97

e) $35.93

f) None of the above.