Head & Shoulders shampoo insured a spokesman football player’s long hair for $1 million with Lloyd’s...

Head & Shoulders shampoo insured a spokesman football player’s long hair for $1 million with Lloyd’s of London. The insurance payout would be triggered if he lost at least 60% of his hair during an on field event. The insurance company placed the odds of a payout at 1% in year 5. Determine how much Head & Shoulders had to pay in a lump sum amount for the insurance policy if Lloyd’s of London wanted a rate of return of 16% per year, compounded quarterly.

Expert Solution

Expected payout at the end of year 5 = 1% of 1,000,000 = 10,000

amount to be paid for the insurance policy = 10,000/1.04²⁰ = 4,563.87

jeff jeffy answered 2 years ago

Practice Problems for Bio 1: 1) Short hair is dominant over long hair in dogs. If...

Practice Problems for Bio 1: 1) Short hair is dominant over long hair in dogs. If a short-haired dog whose mother was long-haired is crossed with a long-haired dog, what proportion of the offspring will be short-haired? 2) The common grackle is a species of robin-sized blackbirds that are fairly common over most of the United States. Suppose that long tails (L) were dominant to short tails in these birds. A female short-tailed grackle mates with a male long-tailed grackle...

1. In cats, long hair (s) is recessive to short hair (S). a) A true-breeding (homozygous)...

1. In cats, long hair (s) is recessive to short hair (S). a) A true-breeding (homozygous) shorthaired male is mated to a longhaired female. What will their kittens look like? Explain your answer. Show your Punnett square. b) A longhaired female cat mates with a stray male cat. The resulting litter contains two shorthaired and three longhaired kittens. What was the male’s phenotype and genotype? Explain your answer. Show your Punnett square.

1. (a) A football club is considering buying a player on 1 January for K10 million....

1. (a) A football club is considering buying a player on 1 January for K10 million. The player's wages will be K20,000 per month higher than those of the man he will replace. The manager expects the purchase to generate a level increase in atten- dances, which will yield an extra income in the rst year of K100,000 from each home match. The manager also expects the new player to increase the club's chance of reaching the Cup Final in...

1) You found a hair at a crime scene that is 10 inches long with the root torn off.

1) You found a hair at a crime scene that is 10 inches long with the root torn off. If the medulla is 70% of the shaft and measures ~40microns, what is the approximate total volume of the hair in μm^3? 2) Being an adept forensic scientist, you are skilled in the art and efficiency of the serial dilution. Given the scenario in question 1, how would you use serial dilution to prepare the same dilutions described: 1:10, 1:100,...

1. If you have current ratio of 1.9, current liabilities of 6 million dollars, and long term assets of twelve million dollars

1. If you have current ratio of 1.9, current liabilities of 6 million dollars, and long term assets of twelve million dollars, and equity of 8.2 million dollars what is your long term debt? 2. Using information from question 1., what is the debt to equity ratio? 3.What is the goal of financial management?

PROBLEM 1 XYZ Company acquired as a long - term investment $440 million of 8% bonds,...

PROBLEM 1 XYZ Company acquired as a long - term investment $440 million of 8% bonds, on July 1, 2018 , and management has the positive intent and ability to hold the bonds until maturity (three years, until June 30 , 2021) . The market interest rate was 5% for bonds of similar risk and maturity. XYZ paid $500 million for the bonds; it will receive interest semiannually on June 30 and December 31 . a) Prepare the journal entry...

Mills Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on...

Mills Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $300.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at...

Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on...

Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December...

Mills Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on...

Mills Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December...

Mills Corporation acquired as a long-term investment $260 million of 7% bonds, dated July 1, on...

Mills Corporation acquired as a long-term investment $260 million of 7% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December...

Question