8. Adam, Bonnie, Chuck, Dave and Elaine are engineers from different companies attending a professional conference at the University of Arizona in Tucson. There are seven hotels near the campus. Each engineer will stay at a randomly picked hotel. a. What is the probability that they will all stay at the same hotel? b. What is the probability that they will all stay at different hotels? c. Adam has a crush on Bonnie, what is the probability that they will stay at the same hotel? d. What is the probability that exactly two of the five engineers will stay at the same hotel with no one else staying at a same hotel?

PROBLEM

In the Hotel management domain, we have the following concepts:
Hotel Hotel chain Hotel room      
Reservation Hilton Hilton San Diego Bayfront
Meeting room Ballroom Guest Room
Catering Service Internet Service       TV Service
Guest Parking Service       Item on bill      

You are asked to design a model, using a UML class diagram to relate the abovementioned concepts:

Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes.

You may introduce additional concepts into the picture to make your model more appropriate.
For each Class in your diagram, you should define at least one attribute and one operation.

Use multiplicity whenever appropriate.

Note that if you are not sure about a concept, you should do research on the problem domain.

There is a hotel in Imatra (Finland) which is very close to Russian border. The
demand function of Finnish consumers for this hotel is Q = 1000 - P. The demand
function of Russian consumers for this hotel would be Q = 1400 - P if they had not
travel to Imatra, but they have to travel and cost of travelling is 200. MC of hotel is
200 for one visitor. Find the difference of profits with price discrimination and without
price discrimination.

(Black-Scholes)

Assume S = $22.00, σ = 0.30, r = 0.05 p.a. continuously compounded, the stock pays a 1.0% p.a. continuous dividend and the option expires in a month.

(a) What is the price of a $20 strike call? (Leave 2 d.p. for the answer)

(b) What is the delta? (Leave 3 sig. fig. for the answer)

(c) If the stock price changes to $22.10 immediately, what is the approximate change of the call price based on delta? (Leave 3 sig. fig. for the answer)

(d) What is the percentage change in the option for a 1% change in the stock? (Leave 3 sig. fig. for the answer)

(e) What is the volatility of the call option? (Leave 2 d.p. for the answer)

(f) If the Sharpe ratio of the stock is 0.3. What is the Sharpe ratio of the call?

The Tikatuli Theater is owned by Mithila Ali. All Facilities were completed on January 31, 2020. At this time the ledger showed: No 101 cash Taka TK 6000. No 141 land taka 10000, No.146 Buildings (concession Stand, projection room, ticket booth, and screen) Taka 8000. No 157 Equipment Tk 6000. No 201 Accounts payable Tk 2000. No. 276 Mortgage payable TK 8000 and No.301 Mithila Ali, capital 20000 Tk. During February the following transaction occurred.
Feb 2: Ordered two additional films at tk 1500 each
Feb 3: Made taka 3000 payment on mortgage and tk 1000 for accounts payable due.
Feb 4: Tikatuli Theater contracted with Bolaka Institute to operate the concession receipts. Bolaka is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession Stand.
Feb 9: Received one of the films to order on February 2 was billed Taka. The film will be shown in February.
Feb 10: Purchased Theater supplies on credit 1500.
Feb 11: Receive a credit memorandum for unsatisfactory theater supplies purchased on feb 10 and returned for credit taka 500.
Feb 17: Received state from Bolaka showing gross concession receipts of tk 1000 and the balance due to Tikatuli Theater of taka 170 (Tk 1000*17%) for February Bolaka paid one half of the balance due and will remit the remainder on march 5
Feb 20: Prepaid Tk. 900 rental on special film to be run in March 25
Feb 30: Cost of unused Supplies Taka 1000.
Instructions:
a. Record the transactions using appropriate journal.
b. Post them in appropriate accounts. (prepare only Cash, Purchase, Accounts payable, Rent expense, Supplies Account)
[10]
Question 5. [Marks: 10]
a)

Business Law

A new hotel has advertised in the local newspapers that its ballroom is going for a cheap rate for the month of June. Patrick wants to make a booking of the ballroom for a party for his daughter, Mary’s birthday on the 25^th June. The hotel manager does not want to accept his booking. However the hotel manager is prepared to give an alternative room to Patrick at a lower rate. Patrick refuses to accept the alternate room and is threatening to sue the hotel for not abiding by the advertisement in the local newspapers.

Critically evaluate whether there is a contract between the hotel and Patrick. Justify the answers with the evidence from the law of contract.

Oriental Hotel Bhd owned a few hotels in Malaysia. Their hotel in Melaka is set against a picturesque vista of Melaka’s most famous historical landmarks pf Melaka Raya. The location is close to Melaka City Centre with cheerful nightlife and mere minutes from the acclaimed UNESCO World Heritage site. The office management operates in the same hotel building as the hotel services provided to its guest. The company itself manages the hotel except for the laundry services which was transferred to its tenant, Cuci-Cuci Services Sdn. BHd.

Oriental Hotel Bhd take another step forward in its expansion plan with the opening a new hotel in the southern region in Malaysia. On 1 January 20X5, the company acquired a land for RM3,200,000 to construct a 4-star hotel building in Pangerang, Johor. Construction of the hotel building commenced on 1 March 20X5 and it was completed on 31 January 20X7, but was only used on 1 March 20X7.Total construction cost incurred excluding borrowing costs were RM34,000,000. The construction cost also includes the rectification of RM200,000. In order to finance the construction, the company took an 8%, 3 year-term loan of RM30,000,000 on 1 February 20X5. The company received a government grant of RM1,400,000 on 1 February 20X7 for the newly constructed hotel building. It is the company’s policy to use deferred income method for the government grant received.

Required:
Explain the accounting treatment for government grant received and how will it differ from the alternative method.