1. A stock is currently sellings for $75 per share. Y could purchase a call with strike price of $70 for 7. You could purchase a put with a strike price of $70 for $2. calculate the intrinsic value of the call option.
2. How much would you have to deposit today to be able to withdraw $500 each year for the next 10 years from an account that earns 8 percent a year?
3. On a 5 year loan for $20,000 with 12% APR, compounded monthly with monthly payments; what are the payments to principal and interest in first month of the fourth year? Use the remaining balance method.