1. Using put-call parity, what market actions would you take to create a synthetic stock?
2. What is the price of a $100,000 Treasury bill with 151 days left to maturity and a discount yield of 3.75 percent?
3. Calculate the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, and an asking quote of 110.7811 (decimal, not 32nds).