1. Suppose you are thinking about purchasing a new car costing $22,000. A bank has agreed to lend you the needed funds to purchase the car but requires 20% down and will loan you the remainder on a 5-year note with monthly payments. They plan to charge 8% annually. What will be your monthly payment?
2. Write down a recent real example (from market) of a trading strategy (pick from Backspread, Straddle, Strangle or Butterfly) and calculate Greeks (Delta, Theta, Gamma and Vega). Then talk a little about current market.