What is the macaulay? duration

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Reference no: EM131933785

Mary wrote a 40 call on ABC stock at a price of? $275. She does not own any shares of ABC. Mary has

I. limited her losses to? $275.

II. unlimited loss potential.

III. limited her gains to? $275.

IV. unlimited profit potential.

A. II and III only

B. I and III only

C. II and IV only

D. I and IV only

2. A? $1,000 par? value, 5% annual coupon bond matures in 4 years. The bond is currently priced at? $965.35 and has a YTM of? 6.0%. What is the Macaulay? duration?

A. 4.00 years

B. .43 years

C. 3.68 years

D. 2.81 years

Reference no: EM131933785

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