1. Interest Rate Risk? Which has greater interest rate risk, a 30-year Treasury bond or a 30-year BB corporate bond?
2. You short 5 contracts for call options on Monsanto (MON) stock with a strike price of $85.00. The option premium is $4.50 per share. At the time you short the contracts, MON's market price was $86.50. If you are long the underlying shares of MON at a current market price of $91.55, what is your total gain or loss if they are exercised on this day?