UBID arbitrage December 9‚ 1998 Long 1 share of MALL at $22.75 Short 0.7159 shares of UBID at $25.55 This position is guarantees a “riskless” profit on June 8‚ 1999 !!! MALL-UBID arbitr 3 Game Plan Dec 9 1998 Jun 8 1999 Investment Payoff Long 1 share MALL $ 22.75 $ - Short 0.7159 shares of UBID $ (25.55) $ - Short Cash Proceeds* $ 25.55 $ 25.55 Long Margin Loan (cash) $ (11.38) $ (11.77) Short Margin Collateral (cash) $ 12.77 $ 13.03 Net (equity) $ 24.15
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started to spend on the first card all over again. Effect on relationships The relationship with my college girlfriend ended in college and I was single again for most of the story. I did meet a new girl and began dating her near the end of my debt payoff journey. By this time I had learned my lesson and didnt try to buy her love. How I survived As I mentioned‚ I was in debt in college for 3 years then unemployed for close to a year. I landed a part-time job at a retail store and kept that job for
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Problem Set #3 AEM 4570: Advanced Corporate Finance All questions are in “Principals of Corporate Finance” by Brealey‚ Myers‚ and Allen(10 ed.). Due date is Thursday March 12 by 5pm. Drop box will be in front of Gail Keenan’s office. Chapter #19: Financing and Valuation Problems: #7‚ 8‚ 17‚ 19 Chapter #20: Understanding Options Problems: #10‚ 16‚ 18‚ 19 Chapter #21: Valuing Options Problems: #1‚ 5‚ 6‚ 12 Chapter #19: Financing and Valuation 7. a. 12%‚ of course.
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Economic Theory‚ VolumeNo.Numbers 2-3‚ October 2011‚ 437-467 Noname manuscript 48‚ (will be inserted by the editor) DOI: 10.1007/s00199-011-0632-8 Risk‚ Ambiguity‚ and State-Preference Theory Robert Nau Received: 30 August‚ 2010 / Accepted: 16 May‚ 2011 © Springer-Verlag 2011 Received: date / Accepted: date Abstract The state-preference framework for modeling choice under uncertainty‚ in which objects of choice are allocations of wealth or commodities across states of the world‚ is a natural
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Task 1 1.1 Organisations can be classified in terms of their business purpose‚ ‘for profit’ or ‘not for profit’ organisations. Organisations that seek to make a profit are mainly private sector businesses which provide goods/services and must make a profit to survive. They can break even or even make a loss for a very short time or they will cease to exist. The main structure of profit seeking organisations includes: 1. SOLE TRADER. Business owned by a single person‚ bearing full responsibility
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THE UNIVERSITY OF THE WEST INDIES ST. AUGUSTINE FACULTY OF SOCIAL SCIENCES DEPARTMENT OF ECONOMICS ECON2000: INTERMEDIATE MICROECONOMICS I – 2012/13 TUTORIAL SHEET 1 THE THEORY OF CONSUMER BEHAVIOUR PROBLEMS 1. The following data represent 5 points on the supply curve for orange juice: PRICE ($ PER GALLON) QUANTITY (MILLIONS OF GALLONS) 1 100 2 300 3 500 4 700 5 900 and these data represent 5 points on the demand curve for orange juice: PRICE
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going for our alternative safe option with a net pay off of +1.5M. A favourable lease decision lends us returns of +1.7M on average‚ through exercising our option of buying White Mountain Development. The reputation of the resort will affect our payoffs in case we get a favourable result on the lease (or at least expect to)‚ and development of the resort gives us an incremental +5.5M over simply selling it without development. 2. The emergency meeting The best course of action‚ given the current
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against a long futures trade a short position in synthetics can be established‚ and vice versa. The diagrams above are payoff diagrams (TheOptionsGuide‚2013) of long stock and short future. If David buy a future contract on the S&P 500 Index‚ he payoff at the maturity date‚ T‚ is the difference between the cash value of the index‚ ST‚ and the futures price‚ F. Payoff=ST-F. From these two diagrams it is clear that the trend of long stock is in the opposite direction with short futures‚ and this
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P>MC and 0 economic profits deadweight loss Market in which only a few firms compete with one another‚ and entry by new firms is impeded Oligopoly Environment Few Firms‚ MC but lower than monopoly price Market Demand (homogeneous-product‚ duopoly) P=a-b(Q1+Q2) TR(firm1)=aQ1-b((Q1*Q2)-b(Q1)^2 MR(firm1)=a-bQ2-2bQ1 MR(firm2)=a-bQ1-2bQ2 Therefore‚ each firms MR depends on its own and its rivals output Find firm’s Best-response function‚ MR=MC a-bQ2-2bQ1=MC1 Q1=((a-Mc1)/2b)-(Q2/2) Similarily
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Determining Databases and Data Communications University of Phoenix BIS/320 * * Determining Databases and Data Communications A firm can fall under several market structures. The market structure of a firm also can change based on a number of items such as technology‚ mergers‚ product or service offering‚ etc. The simulation of East West brought to light the various market structures and the advantages and disadvantages of each. East West’s Consumer
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