Maybe not as bad as it looks. For every 10 cents north of 87 cents he would profit $30K. ATM if the sp hit 97, I wouldn't be running out and getting a loan to exercise the option in fear the SP could drop leaving you with the heads.
Then again if the sp hits $1.50, I'd run out and get a loan for sure. Maybe PMI will give him an inside house loan.
I'd also be waiting for QE3 and hope for $1.50+ days. I know I am...
