Why would an investor want to buy-sell puts or calls

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Reference no: EM131980647

1. A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 11% of its $1,000 par value. If the last interest payment was made 2 months ago and the coupon rate is 6%, the invoice price of the bond will be _________.

A. $1,140

B. $1,10

C. $1,180

D. $1,200

2. Why would an investor want to buy/sell puts or calls? When would each of them have value and when would they have no value?

A. Buy put

B. Sell put

C. Buy call

D. Sell call

Reference no: EM131980647

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