Using marginal cost of capital in their operations

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1. Travis owns both a September $30 call and a September $30 put. If the call finishes at-the-money, then the put will:

Also finish in-the-money.

Finish at-the-money.

Finish out-of-the-money.

Either finish at-the-money or in-the-money.

Either finish at-the-money or out-of-the-money.

2. Suppose a 5-year, $1,000 bond with annual coupons has a price of $880 and yield to maturity of 6%. What is the bond's coupon rate? (round to two decimial places)

3. Give an example on how Apple and Exxon Mobil Corporation are using marginal cost of capital in their operations?

Reference no: EM131890516

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