1.    Consider an option on a non-dividend paying stock when the stock price is $30, the exercise price is $28, the annual interest rate is 5%, the annual volatility is 25%, and the time to maturity is 6 months. Show the details of your calculations. a)  What is the price of the option if it is a European call?

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A: Here,

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A:

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Q: 13)

A: I have given proper answer with proper explanation. Kindly check it properly and understand to it.

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.