Question

Question 6 (1 point) Use the information in the screenshot: Puts for November 29, 2019 Contact Name Last Trade Date Strike Last Price AMZN191129P01280000 2019-11-04 2 30PM EST 1280 00 0.14 AMZN191129P01290000 2019-11-04 12 52PM EST 129000 0.05 Ask Change 0.00026 0.00 0.00 026 0.00 Change Volume Open Interest implied Volatility 1 4 4 4 9.85% 6 10 48.78% Answer if the option is in/out of/at the money Question 7 (1 point) Based on the put option from last question, you bought the option (strike: $1280), paid the Last Price 0.14. On the expiration date, amazon stock price is 1,300/share, your net profit per share is Question 8 (1 point) Go to https://www.fidelity.com/ in the search box type in FTBFX, you plan to invest $2400 in this fund, how many shares will you receive (round to an integer, e.g., 200.5 shares, round it to 201), show your work. Question 9 (1 point) Researching information about FTBFX holding, you conclude that this fund holds more than 50% in high yield bond. True False

Answer 1

6. I need the underlying price of security Amazon.

7. As the you are the buyer of put option and price of at expiry is greater than strike price of the options, the option is going to expire and your net profit= premium paid =$-0.14

8.

FTBFX FIDELITY TOTAL BOND FUND Get Prospectus NAV 10.90 -0.01 (-0.09%) AS OF 11/21/19 Growth of Hypothetical $10,000 Performance FTBFX YTD +9.66% +11.07% 1-Year $14,000 5-Year +3.70% $12.000 10-Year +4.59% 0 12 14 16 18 All performance as of 10/31/19. Performance data provided by Morningstar.

As the NAV of the fund is 10.9 , the number of share you will get= Invested Fund/NAV=2400/10.9=220.18 or 220 shares (Approx)

9. False

If you go to the link

https://fundresearch.fidelity.com/mutual-funds/composition/31617K881

You will see high yield bond has weightage of 11.99%:

Asset Class Diversification 45,6 AS OF 10/31/2019 Investment-Grade Bonds 84.12% High-Yield Investments 11.99% 4.21% Emerging-Markets Investments -0.32% Cash & Net Other Assets

Hence, Given Statement is False.