Q10 Mohammed Bayyoud bought a house for $293,000. He put 20% down and obtained a simple interest amortized loan for the balance at 5.375% annually interest for 30 years. The monthly payment is:

a. 1378.78

b. $1500

c. $1312.57

d. $1412.57

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Q11A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29 and rises to $32 before the expiration date. What is the stock price at which the speculator would break even?

a. $34

b. $28

c. $26

d. $32

e. $29

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Q13 Suppose you buy a call option on a $100,000 Treasury bond futures contract with an exercise price of 105. If the price of the Treasury bond is 115 at expiration, is the option at the money, in the money or out of the money? Determine the premium if the profit equals $8,000.

a. $3000

b. $888,993

c. $992,000

d. $2000

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Q 42.You submit a noncompetitive bid to purchase a 28-day $1,000 Treasury bill, and you find that you are buying the bond for $999.81333. What are the discount rate and the investment rate?

a. 0.00465

b. 0.00564

c. 0.00243

d. 0.00345