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In the United States, most fixed rate residential mortgages are prepayable at any time without penalty. Identify the following elements of this prepayment option:(i)whosellstheoption,(ii)whobuystheoption,(iii)itsstrikeprice, (iv)
In the United States, most fixed rate residential mortgages are prepayable at any time without penalty. Identify the following elements of this prepayment option:(i)whosellstheoption,(ii)whobuystheoption,(iii)itsstrikeprice,
(iv) whether it is a put or a call, and (v) whether it is European or American style in nature.
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