Suppose a stock is priced at $75 at expiriry and the annual interest rate is 8 %. Determine the profit at expirity for the following one-year european call options: A $ 70-strike call with premium $9.91 A$ 75-strike call with premium $ 6.03 A $ 80-strike call with premium $ 4.64 ?

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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.