Describe the essentials of an efficient market

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1. How much would you pay for a P&G Bond that pays a 5% coupon, matures in 20 years and the yield on current bonds are 4%?

2. Describe the essentials of an efficient market.

3. There is a critical meeting where OPEC members are going to discuss whether to reduce of increase oil supply. Current price of oil is $77. Use put and call options to design a strategy profitable in case of possible big positive and negative price swings.

Reference no: EM132072728

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