On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9). Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August 2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes the payment. The spot and forward rates are as follows. Date Spot rate in AUD Forward rate in AUD 1 June 2020 0.19 0.2 30 June 2020 0.2 0.25 1 August 2020 0.3 0.3 Required: a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a he

ue

2. What is your subject?

dge 5 Marks b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020 c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020

Consider the daily percent changes of McDonald’s stock price and those of the Dow Jones Industrial Average for trading days in the months of July and August 2014. (obtain all graphs and calculations from excel, but provide manual calculations):

1. Find the 95% confidence interval for the slope coefficient b1 (so-called bet
2. Test at the 5% level of significance to see whether or not the daily percent changes of McDonald’s and of the Dow Jones Index are significantly associated (in short, is B1 significant)
3. Find the 95% prediction interval for the percent changes in McDonald’s stock on a day in which the Dow Jones Index is up 1.5%
4. Find the 95% confidence interval for the mean percent change in McDonald’s stock for the idealized population of all days in which the Dow Jones index is up 1.5%

HR Industries (HRI) has a beta of 1.3; LR Industries's (LRI) beta is 0.7. The risk-free rate is 6%, and the required rate of return on an average stock is 13%. The expected rate of inflation built into rRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI? Do not round intermediate calculations. Round your answer to two decimal places.

Please show all steps.

1. Locate a root of sin(x)=x2 where x is in radians. Use a graphical technique and bisection with
the initial interval from 0.5 to 1. Perform the computation until ea is less than es=2%. Also
perform an error check by substituting your final answer into the original equation.
2. Determine the positive real root of ln(x
2
)=0.7 using three iterations of the bisection method,
with initial interval of [0.5:2].
3. Determine the lowest positive root of f(x)=7sin(x)e
-x
-1 using (a) the Newton-Raphson
method (three iterations, xi=0.3). (b) the secant method (five iterations, xi-1=0.5 and xi=0.4). (c)
the modified secant method (three iterations, xi=0.3, δ=0.01).
4. Use the Newton-Raphson method to find the root of f(x)=e
-0.5x
(4-x)-2. Employ initial guesses
of (a) 2, (b) 6, and (c) 8. Explain your results.

A student uses the given set of data to compute a least‑squares regression line and a correlation coefficient: ? 0.7 0.8 1.7 1.7 1.3 2.6 8.0 ? 1 2 2 1 0 1 5 The student claims that the regression line does an excellent job of explaining the relationship between the explanatory variable ? and the response variable ? . Is the student correct?

a. Yes, because ?2=0.74 means that 74% of the variation in ? is explained by the least‑squares regression of ? on ? . b. No, because the outlier is inflating the correlation coefficient. c. Yes, because the correlation coefficient is ?=0.86 , which is close to 1. d. No, because the slope of the regression line is only 0.54.

#2 For each of the following cases, write down the four components of the 4-momentum in the form [Pt, Px, Py, Pz]. Assume each particle has mass m. (a) A particle moves in the +x direction in the laboratory at speed 0.8. (b) The same particle is observed in the Other Frame, in which it is at rest. (c) Another particle moves in the +z direction in the laboratory with speed 0.7. (d) The particle from part (c) as observed in the Other Frame from part (b). (e) Verify that your particle in part (d) still has mass of m

Its not incomplete this is the question as asked , with no other information given.

The local movie theater industry has a demand curve of P=26-.2Q for a movie showing (please note the decimal in front of the 2). It has a supply curve (MC curve) of $2, because the theater figures for each customer there will be a cleanup cost afterwards. In reality, a theater might sell food and drinks for extra profits, but this one does not.

1. What is allocative efficiency? What is the price of a ticket and number of patrons (quantity) that will result in allocative efficiency? Why is this price not practical?
2. If the theater, the only one in town, wishes to price as a monopoly, what would the price of a ticket and quantity (number of patrons) be?
3. If this theater would like to price discriminate by charging some $20 and letting them sit in the front rows, regular customers the monopoly price, and senior citizens who do not sit in the front $5, by how much would the $20 price increase profits over a regular monopoly price? By how much would the $5 price increase profits over the regular monopoly price? By having three prices instead of one, how much would profit increase by? Explain your answers and demonstrate with a graph.
4. Assume another theater opens so there are two theaters in town. The marginal cost and demand curve remain the same for the industry, but there are now two firms instead of one. Use the Cournot model of duopoly to determine the new movie theater ticket price with two theaters instead of one. Explain your answer and include a graph.
5. What would be the Lerner Index for these two theaters? What does this number measure?

The local movie theater industry has a demand curve of P=26-.2Q for a movie showing (please note the decimal in front of the 2). It has a supply curve (MC curve) of $2, because the theater figures for each customer there will be a cleanup cost afterwards. In reality, a theater might sell food and drinks for extra profits, but this one does not.

1. What is allocative efficiency? What is the price of a ticket and number of patrons (quantity) that will result in allocative efficiency? Why is this price not practical?
2. If the theater, the only one in town, wishes to price as a monopoly, what would the price of a ticket and quantity (number of patrons) be?
3. If this theater would like to price discriminate by charging some $20 and letting them sit in the front rows, regular customers the monopoly price, and senior citizens who do not sit in the front $5, by how much would the $20 price increase profits over a regular monopoly price? By how much would the $5 price increase profits over the regular monopoly price? By having three prices instead of one, how much would profit increase by? Explain your answers and demonstrate with a graph.
4. Assume another theater opens so there are two theaters in town. The marginal cost and demand curve remain the same for the industry, but there are now two firms instead of one. Use the Cournot model of duopoly to determine the new movie theater ticket price with two theaters instead of one. Explain your answer and include a graph.
5. What would be the Lerner Index for these two theaters? What does this number measure?

Instructions:

Submit to this page (from Part I) with your answers and the C++ program from Part II to the Blackboard.

Type all answers in this page in RED. Part I Pointers to variables or places in RAM (Random Access Memory) are memory addresses – the address of the byte of memory to which the pointer is referring (or “referencing”).

Some programming languages use pointers to increase efficiency, to make changes to variables indirectly, etc.

In C++, if Z is an integer variable, then &Z is the memory address of that variable.

For example if we have: int Z = 100; cout << &Z << endl; The output may look like 0x38ff64. “38ff64” would be the byte address in hexadecimal form.

Hexadecimal is just a base 16 integer with 16 digits: 0 through 9 and ‘a’ through ‘f’ all to represent 0 through 15.

Pointer variables in C++ are variables that hold memory addresses.

Example int X = 1000; //line 1 int A = 200; //line 2 int B = 300; //line 3 int C = 100; //line 4 int *p = &B; //line 5 p is a pointer variable cout << p << endl; //line 6 p++; //line 7 cout << p << endl; //line 8 This means that p is a pointer originally initialized to hold the memory address of B.

(10 points)

1. What compiler are you using? Circle one DEV C++, Visual, XCODE, some other (10 points)

2. Place these eight lines of code into a new program. What is your output? _______________ (10 points)

3. By how much did p change from the first to the second output? lines 6 and 8: ________________ (NOTE: In Hexadecimal 0 is the first digit and f is the last; so, f – 3 is d and f+3 is 2.) (10 points)

4. Is p now the memory address of A or B or C? (which one or none) _____________________ [2]

Let’s try accessing a memory location indirectly – by pointers.

Consider the following code: int *q; q = new int; q will now point to a piece of memory with no actual name. The location of that memory location is in the value of q.

That memory can be manipulated by “dereferencing” q like the following: *q = -200; That line of code assigned -200 to the piece of memory that has its address stored in q.

That piece of memory can be changed like (*q)++ will increment the value by one. (10 points)

5. What is the new value of *q? _____________________ This means, if I have the following code, there will be some changes to A. int A = 650; int * p = &A; *p = *p – 200; cout << *p << endl; (10 points)

6. What is the value of variable A + *p? _________________ Pointers and structs are very important in C++ and many other languages. The following example defines a data type “PAIR” containing a double field called D and an int field called I. struct PAIR { double D; int I; }; PAIR two; //two is just a variable of type PAIR PAIR * pairptr = &two; Variable two is of type PAIR. pairptr is a pointer to that variable. *pairptr refers to the entire variable two. (*pairptr).D refers only to the double field D. So, you could assign a value to D by either two.D = 100.11 or (*pairptr).D = 100.11. Often in programming the pointer is only pointing to a memory location without a variable name. So the dereferencing (*pairptr).D = 100.11; would have to be used. This is a bit clumsy in C++; so, the language uses an arrow notation like “pairptr -> D = 100.11;” (10 points) 7. How can you assign the “int I” field to -5555 in two different ways? a._____________________ b._____________________ [3] Part II – (30 points) Design a program to calculate the cost of gas for a trip. The user will be prompted for the cost of a gallon of gas, the number of miles of the trip, and the number of miles per gallon the car gets. The program should use pointers, the address operator, and the dereferencing operator for ALL input, calculations, and output. Enter, compile, link, and execute Lab7GasTripFirstInitialLastName.cpp The following is a sample output that might appear after running your program. Input by the user is shown in bold. This program calculates the cost of gas for a trip when the user enters the cost of gas, the number of miles, and the number of miles per gallon the vehicle gets. Enter the number of miles in your trip: 890 Enter the mpg your car gets: 23 Enter the cost of gasoline: 1.79

Your trip will cost $68.02

Hint: the trip cost = cost of gasoline * (number of miles / mpg your car gets)

The Red Hen company is launching its new food for sale in supermarkets throughout Michigan. The sales department is convinced that its spicy chicken soup will be a great success. The marketing department is considering an intensive advertising campaign. The advertising campaign will cost $2,000,000 and if successful produce $9,600,000 in added revenue. If the campaign is less successful (25% chance), the added revenue is estimated at only $3,600,000. If no advertising is used, the revenue is estimated at $7,000,000 with probability 0.7 if customers are receptive and $3,000,000 with probability 0.3 if they are not.

Question 1. Write an equation to calculate the expected value for each decision as a function of the probability that the major advertising campaign will be effective (p)?