You decided to buy 100 shares of ABM Corp. Currently it is trading at $43 per share. You think you can get a better price and place a limit order to buy shares at $42 per share. During the next month the stock drops to $40 and then recovers to $44. What is your profit?

2. You decided to buy 400 shares of ABM Corp. that is trading at $37 per share. You want to get a better price and place a limit order to buy shares at $35 per share. During the next month the stock drops to $36 and then recovers to $38. What is your profit?

3. You bought British pound put option at a premium of $0.03 per unit. The exercise price is $1.41. In one month (right before the option expires), British pounds trade at $1.43 in the spot market. What will be your net profit?

4. You decided to get an adjustable-rate 30-year mortgage ($240,000). The interest rate is fixed at 4.3% for the first five years. After eight years the interest rate goes up to 9.4% and your loan balance is $180,431.87. Estimate your second mortgage payment.

5. You want to buy a home and you need to borrow $340,000. Fixed-rate 30-year mortgages have an interest rate of 6.1%. You decide to obtain this mortgage loan. How much will you have to pay per month?

6.You want to buy a home for $330,000 and you need to borrow 80% of the home price. Fixed-rate 30-year mortgages have an interest rate of 4.3%. You decide to obtain this mortgage loan. Estimate ending balance at the end of the second month.

7. You decided to get an adjustable-rate 30-year mortgage ($240,000). The interest rate is fixed at 4.3% for the first five years. After eight years the interest rate goes up to 9.4% and your loan balance is $180,431.87. Estimate your ninety-seventh (after eight years) mortgage payment.