Given a single-period binomial model with A(0) = 10, A(T) = 20, S(0) = 100 and S(T) = 210 with probability 0.5 and S(T) = 90 with probability 0.5. Assuming no arbitrage exists, find the price C(0) of a call option with strike price X = 150. Please show work

Singing Fish Fine Foods has a current annual cash dividend policy of $2.00. The price of the stock is set to yield a return of 14%. What is the price of this stock if the dividend will be paid for:

A) 12 years?

B) 15 years?

C) 40 years?

D) 50 years?

E) 100 years?

F) Forever?

Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.50. The price of the stock is set to yield a return of 12 %. What is the price of this stock if the dividend will be paid a.  for 10 ​years? b.  for 16 ​years? c.  for 42 ​years? d.  for 50 ​years? e.  for 100 ​years? f.  ​forever?

Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.75 The price of the stock is set to yield a return of 10%. What is the price of this stock if the dividend will be paid

a. for 12 ​years?

b.for 17 ​years?

c.for 41 ​years?

d.for 60 ​years?

e.for 100 ​years?

f.​forever?

The Lippert Company uses the periodic inventory system. The following July data are for an item in loppers inventory:

July 1 Beginning Inventory 100 units@ $8 per unit

10 Purchased 120 units@ $9 per unit

15 sold 130 units@

26 Purchased 95 units@ $10 per unit

Calculate the cost of goods sole for July and ending inventory at July 31 using (a) first-in, first out (b) last-in, first out and (c) the weighted- average cost methods. Round your final answers to the nearest dollar.

A. first-in, first-out

Ending Inventory $-

Cost of goods sold $-

B. Last-in, first-out

ending inventory $-

cost of goods sold $-

C. Weighted- average cost

ending inventory. $-

cost of goods sold $-

Consider a 2-period binomial non-recombining model. Let r = 0.05 be the discrete interest rate for each of the periods, S(0) = 100 and suppose that the stock price follow four possible scenarios:

It is known that the risk-neutral probability for each scenario ?i , i = 1, 2, 3, 4 satisty P ? (?1) = 0.2, P? (?2) = 0.4, P? (?3) = 0.3, P? (?4) = 0.1.

(a) Draw the tree of the stock prices using S^u , S^uu, and S^du, and find the risk-neutral probability for each route on the tree.

(b) Find the prices S^u , S^uu, and S^du

(c) Find today’s price of a European call option with strike price K = $100 maturing after two steps.

(d) Find today’s price of an American put option with strike price $110 and expiration date in two steps. Should the American option be exercised early? If so, when?

The spreadsheet shows you how to calculate invoice price for 6-year maturity bond with a coupon rate of 2.25% (paid semiannually). The market interest rate given is 7.9%. Now, please modify the spreadsheet and calculate invoice price of bond with 6.25% coupon (paid semiannually), settlement date July 31,2012, maturity date May 15, 2030, YTM 7.9%.

                                                2.25% coupon bond,     

                                               maturing July 31, 2018                 Formula in column B

Settlement date                                     7/31/2012                     =DATE(2012,7,31)

Maturity date                                        7/31/2018                     =DATE(2018,7,31)

Annual coupon rate                               0.0225

Yield to maturity                                   0.079   

Redemption value (% of face value)       100      

Coupon payments per year                     2                            

Flat price (% of par)                              73.4101                        =PRICE(B4,B5,B6,B7,B8,B9)

Days since last coupon                          0                                  =COUPDAYBS(B4,B5,2,1)

Days in coupon period                           184                               =COUPDAYS(B4,B5,2,1)

Accrued interest                                    0                                  =(B13/B14)*B6*100/2

Invoice price                                         73.4101                        =B12+B15

Calculate and graph the profit maximizing price and quantity in output markets (monopoly)

ACME Electricity provides electricity service in a rural community as a monopolist with no competitors.

The following Table 1 shows price per unit and total costs associated with various amounts of electricity (in 100 kilowatts blocks) in the short-run:

Table 1:

Step 1

Using the information in Table 1, create a separate table that includes calculations of the following for each quantity of electricity (in 100 kilowatt blocks): Total Revenue, Marginal Revenue, Total Cost, Marginal Cost, Average Total Cost, and Profit.

The table can be computer-generated or created by hand. Be sure to appropriately label the table so the various costs, revenues, and profit can be identified. Round off to two decimal places for the dollar values.

Step 2

Using Table 1 and the table you created in Step 1 for this section, create one graph that contains the following curves: Marginal Revenue, Demand, Average Revenue, Marginal Cost, and Average Total Cost.

Label the vertical axis “Price, Revenue, and Cost (in dollars)” and the horizontal axis “Quantity of Electricity (in 100 kilowatt blocks)”. Label each of the five curves on the graph. The graph can be computer-generated or created by hand. Indicate the profit maximizing quantity and price in this graph. Indicate the amount of profit earned by the company at the profit maximizing quantity by shading the relevant area on the graph.

Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3Required 4 Calculate the first production department's equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production 304,200 Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process inventory, May 1 73,000 100 % 50 % Work in process inventory, May 31 53,000 100 % 30 % Materials cost in work in process inventory, May 1 $ 57,900 Conversion cost in work in process inventory, May 1 $ 17,000 Units started into production 251,200 Units transferred to the next production department 271,200 Materials cost added during May $ 120,410 Conversion cost added during May $ 244,261 Required: 1. Calculate the first production department's equivalent units of production for materials and conversion for May. 2. Compute the first production department's cost per equivalent unit for materials and conversion for May. 3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

Assuming the standard US Par (Face) value of $1000,

Annual coupon = $100 x 6% = $60

3) Consider a 6 percent coupon bond with a market yield of 7%.

a) What is the price of this bond if it matures tomorrow?

b) What is the price of this bond if it matures in 5 years?

c) What is the price of this bond if it matures in 10 years?

d) What is the price of this bond if it matures in 15 years?

e) What is the price of this bond if it matures in 20 years?

f) What is the price of this bond if it matures in 25 years?

g) What is the price of this bond if it matures in 30 years?

h) Plot price on the vertical axis and term to maturity on the horizontal axis.