Q.1 Explain the difference between a private placement and public distribution of a bond. Discuss the impact of bond ratings. ( 5 Marks)

Q.2. Explain how the reinvestment rate for inflows may materially affect the final value of an investment. Understand why investors are attracted to convertible securities and warrants.

( 2.5 Marks )

Q.3. Describe speculative and hedging strategies with options. Explain how option contracts are closed out at expiration.( 2.5 Mark)