Professor Yates Homework 8 Solutions FI 4000 Homework 8 Solutions 1. Selling a contract is a short position. If the price rises‚ you lose money. Loss = (1‚250 – 1‚200) $250 = $12‚500 2. Futures price = S0 (1+ rf − d)T = $1‚200 (1 + .01 – .02) = $1‚188 3. The theoretical futures price = S0 (1+ rf)T = $1‚700 (1 + .02) = $1‚734. At $1‚641‚ the gold futures contract is underpriced relative to the gold spot price. To benefit from the mispricing‚ we sell what is overpriced (gold)
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FIN 534 – Homework Chapter 2 Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed‚ or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. Which of the following statements is CORRECT? c. If a firm is more profitable than average (e.g.‚ Google)‚ we would normally expect
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Ashley Scott – Week ONE Homework Problem Based on Chapter 14‚ Residual Dividends 1. If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate‚ what will be the total 2012 dividend payout in Dollars? 3‚000‚000 x (1 + .08) 3‚000‚000 x 1.08 = $3‚240‚000 2. What is the 2012 dividend payout ratio if the company increases its dividends at 8%? Net income increased by 8% would be 15‚000‚000 x (1 + .08) = 15‚000‚000 x 1.08 = 16‚200‚000 Dividend Payout
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Week 6 Homework Solutions Question 3 Explain how built-in (or automatic) stabilizers work. What are the differences between proportional‚ progressive‚ and regressive tax systems as they relate to an economy’s built-in stability? Answer In a phrase‚ “net tax revenues vary directly with GDP.” When GDP is rising‚ so are tax collections‚ both income taxes and sales taxes. At the same time‚ government payouts—transfer payments such as unemployment compensation and welfare—are decreasing. Since net
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EE 351K Probability‚ Statistics‚ and Random Processes Instructor: S.Vishwanath Homework 9 Solution FALL 2012 sriram@ece.utexas.edu Problem 1 A fair coin is tossed 100 times. Estimate the probability that the number of heads lies between 40 and 60 using central limit theorem(the word between in mathematics means inclusive of the endpoints). Solution: The expected number of heads is 100 1 = 50‚ and the variance for the number of heads is 2 11 100 2 2 = 25. Thus‚ since n = 100 is reasonably large
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Econ3101 - Section 006 Intermediate Microeconomics Xavier Vinyals-Mirabent Due: Wednesday‚ February 1st‚ 2012. Solutions to Homework 1. 1 1. A consumer has preferences for two goods. Her preferences satisfy Axioms 1 through 4 as discussed in class. A v D v 10 E v 5 C v B v 0 0 5 (a) Plot and label the following bundles: A (2‚10) B (6‚2) C (0‚4) D (8‚10) E (4‚6) (b) Assume A is indifferent to B (A ∼ B). On a single line‚ list all the bundles in descending order of preference
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Problem 20-6 on Call Options based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a. If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? • Payoff-max=(50-s) = max (55-40)=15 the Ford owner will gain $15 b. If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? • Payoff-max=(35-s) = max (35-40)=-5 the owners will gain $-5 c. Draw
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6302 homework 3 Problem 1: a) b) Resources | Task time | Capacity of resources | Markers | 1min | 5*1*60/1=300 | Adams | 2mins | 1*60/2=30 | Bob | 1min30secs | 1*3600/90=40 | Oven | 30secs | 6*1*3600/30=720 | rack | 3min15secs | 30*1*3600/195=553.84 | Chloe | 1min | 1*60/1=60 | fountain | 30secs | 1*3600/30=120 | Bottleneck=Adams=30 orders per hours Process capacity=30 orders per hours Demand rate=40 orders per hours Flow rate=30 orders per hours
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FIN 201 SOLUTION SET – UNIT TWO CHAPTER 3 3‐2 Liquidity Ratios The top part of Ramakrishnan‚ Inc‚’s 2012 and 2011 balance sheets is listed below (in millions of dollars). Current assets: 2012 2011 Current liabilities: Cash and marketable securities Accrued wages and $ 34 $ 25 taxes 2012 2011 $ 32 $ 31 Accounts receivable 143 128 Accounts payable Inventory 206 187
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HW 0 Solutions !"# # # # # +#/3#’0-#$++)‚-$&.)#&)+$53)#06# 2 B 2 # $%#&%#$’(#)%#$*)#$++)‚-$&.)#./’)$*#‚*01*$22/’1#*).$-/0’34/‚3"# # # (#/3#’0-#$++)‚-$&.)#&)+$53)#06# 3 A # # # # # 6#/3#’0-#$++)‚-$&.)#&)+$53)#06#!"## # +%#(%#$’(#6#+05.(#’0-#&)#605’(#/’#$#./’)$*#‚*01*$22/’1#20().#&)+$53)#-4)7#4$8)#-4)#$&08)# ’0’./’)$*#-)*23"# 9:"# $"# ;)-# $#<#’52&)*#06#5’/-3#06#*)15.$*#20()."# # # # # %#<#’52&)*#0 =$> 3"-" #!$ !C #$ 9 !C #$ A @ @ @ BC #% 9 !C #% B !C #% : ###?$ @ ##A% # #DEE####F5--/’1#$’(#3)G/’1
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