What is monthly payment that amortizes loan under option

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Reference no: EM131927922

1. Suppose a call option on a stock has an exercise price of $70 and a cost of $ 2 and suppose you buy the call. identify the profit to your investment, at the call expiration, for each of these values of the underlying stock; $25,$ 70,$100,$400.

2. You wish to borrow $200,000 to buy a house, and a mortgage lender offers a 30-year, 12% fixed rate mortgage loan. He also offers two payment options. One is a standard mortgage, requiring monthly payments beginning one month from today’s closing date. What is the monthly payment that amortizes the loan under this option?

Reference no: EM131927922

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