Please provide an excel file that can answer questions similiar to this one by chaning the data and inputing new data

1.You sell short 100 shares of the GTY stock at $80 per share. Assume your broker requires an initial margin of 40% and a maintenance margin of 25%.

1)If the stock price drops to $70, what is the percentage margin?

Initial total stock value: $80(100)=$8,000

If the stock price drops to $70,

Total stock value: $70(100)=$7,000

Required margin deposit when the short position was entered into: $8,000(.40)=$3,200.

Percentage margin =

2)If the stock price increases above a certain level, P, the percentage margin would drop below the maintenance margin of 25% and you will get a margin call. What is P?

Percentage margin =

3)If the stock price increases to $95, how much money do you have to add to your account to restore the maintenance margin of 25%?

Let this amount to be X.

Percentage margin =

X=675

The TSM Corporation’s stocks are currently selling at $45 per share. You believe that the stock is overvalued and decide to take a short position on the stock. You short 100 shares for a total of $4,500. Your broker borrow this number of shares from his clients, sell them, and deposit $4,500 in your account. You cannot withdraw it. In addition, you must post a margin as collateral. Assume your broker requires an initial margin of 60% and a maintenance margin of 40%.

Percentage margin:

The equity value in account is equal to cash received from the short sale, plus the required margin deposit, minus the value of the stock owed. The initial margin requirement is 60%, so the initial required margin deposit is $4,500(.60)=$2,700. Initially the value of the stock owed is also $4,500.

So initially, the percentage margin is equal to

If the stock price drops to $40,

Percentage margin =

If the stock price increases to $50,

Percentage margin =

If the price increases above a certain level, P, the percentage margin would drop below the maintenance margin of 40% and you will get a margin call. What is P?

Percentage margin =

If the stock price increases to $60, how much money do you have to add to your account to restore the maintenance margin of 40%?

Let this amount to be X.

Percentage margin =

X=1,200

Firm CWBY needs to raise $4.2 billion dollars of new equity to fund new investments. The current market price of CWBY’s stock is $4.25 per share. There are currently 1 billion shares outstanding. The firm wants to conduct a 4 for 3 rights offer. The price per share in the offer will be $3.15 per new share. If we assume 100% subscription rate, what is the value of each right? What will be the impact on the market price of the stock?

Economic Forecasting. Assume you are a cartoon artist at a local theme park. At your current price, $8.50, you sell 500 sketches a month. As a result of a $1.00 price increase sales reduced by 100 sketches.

1. What is the demand elasticity of your sketches? Interpret your results.
2. Assume your marginal cost is $4. What is your desired margin and your current margin? Interpret these numbers.
3. Was your price strategy profitable? Why or why not?

The market demand curve is P = 90 − 2Q, and each firm’s total cost function is C = 100 + 2q 2 .

(d) (2 points) Verify that the monopoly price and quantity satisfy the monopolist’s rule of thumb for pricing.

(e) (3 points) What is the monopolist’s factor markup of price over marginal cost?

(f) (4 points) How does the monopolist’s factor markup of price over marginal cost compare to that of a perfectly competitive firm?

10. A monopolist faces the following average revenue (demand) curve:

P = 100 – 0.01Q

Where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 50Q + 30,000. Assume that the firm maximizes profits.

1. What is the level of production, price, and total profit per week?
2. If the government decides to levy a tax of 10 cents per unit on this product, what will be the new level of production, price, and profit?

Today’s price of a non-dividend paying stock is $60. Use a two-step tree to value an American put option on the stock with a strike price of $50 that expires in 12 months. Each step is 6 months, the risk free rate is 10% per annum, and the volatility is 15%. Assume that the option is written on 100 shares of stock.

What is the option price today?

How would you hedge a position where you sell the put option today?

There are 1001 used car sellers, and Let's say the value they give is $0, $100, $200, $300, ... , $9900, $ 10000(that is, their willing price).

There are many buyers who value each car higher than its current owner. For example, a car worth $3700 to a seller is worth $4700 to a buyer. In this case, obtain a balanced price. In other words, look for a price from the buyer's point of view that they think they deserve to buy based on information about the seller they have.

Home’s demand curve for wheat is D = 100-20P. Its supply curve is S = 20 + 20P. Suppose that Home is a small country.

a. Graph the demand and supply curves.

b. In the absence of trade, what would the price of wheat be in Home?

c. The price of wheat in the world market is 1.5. What is the free-trade equilibrium price of wheat in Home?

d. Determine the amount of domestic production, domestic consumption, and imports of wheat in Home under free trade.

1. A bond trader purchased each of the following bonds at a yield to maturity of 11%. Immediately after she purchased the bonds, interest rates fell to 9%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table:

Price @ 11%       Price @ 9%         Percentage Change