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Q1. A Call Option on the stock of XYZ Company has a market price of $9.00. The price of the underlying stock is $36.00 and the strike price of the option is $30.00 per share. What is the Exercise Value of this Call Option? What is the Time Value of the Option?Q2. The Exercise (Strike) Price on ABC Company s Option is $21.00 its Exercise Value is $23.00 and its Time Value is $7.00. What is the Market Value of the Option? What is the price of the underlying stock?Q3. Company A can issue floating-rate debt at LIBOR + 1% and it can issue fixed rate debt at 9%. Company B can issue floating-rate debt at LIBOR + 1.5% and it can issue fixed-rate debt at 9.4%.Suppose A issues floating-rate debt and B issues fixed-rate debt after which they engage in the following swap: A will make a fixed 7.95% payment to B and B will make a floating-rate payment equal to LIBOR to A.What are the resulting net payments of A and B?Q4. What is the implied interest rate yield on a Treasury Bond ($100000) futures contract that settled at 100 24 (or 100 24/32)? If interest rates increased by 0.75% what would be the contract s new value?Assume that this is based on 20 Years with an annual yield of 8% with semi-annual payments.

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