QUESTION 31

OPTIONS MARKET. If the option expires at-the-money, your gain or loss per contract is:

A. -$1,562.50

B. -$1,400

C. $0

D. -$1,625

QUESTION 32

OPTIONS MARKET. What is the maximum gain that the writer of the Oct 115 PUT stands to make?

A. $100 per contract

B. $1,600 per contract

C. The intrinsic value of the put at expiration

D. The exercise price of the option

QUESTION 33

MORTGAGE MARKET. Which of the following shareholder-owned corporations created by Congress is charged with the task of providing a secondary market for FHA and VA and, since 1970, also conventional mortgages?

A. Ginnie Mae

B. Fannie Mae

C. Freddie Mac

D. CMOs

E. All of the above.

QUESTION 34

MORTGAGE MARKET. You wish to buy a home worth $250,000. You take out a 10-year mortgage with a 20% down payment. Your mortgage rate is 8%. How much is your monthly payment?

A. $2,426.55

B. $1,667.01

C. $2,483.82

D. $1,747.00

E. None of the above

QUESTION 35

MORTGAGE MARKET. With regard to the above problem, how much is your interest payment in the first month?

A. $133,333.33

B. $11,520.00

C. $1,333.33

D. None of the above