A stock price is currently $130. Over each of the next two four-month periods it is expected to go up by 15% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. (All calculations keep four digits after the decimal point)

1. What is the value of an eight-month European call option with a strike price of $133?

2. What is the value of an eight-month American put option with a strike price of $133?

WG Investors is looking at three different investment opportunities. Investment one is a​ five-year investment with a cost of ​$850 and a promised payout of ​$1,700 at maturity. Investment two is a​ seven-year investment with a cost of ​$850 and a promised payout of ​$2,125. Investment three is a​ ten-year investment with a cost of ​$850 and a promised payout of ​$4,080. WG Investors can take on only one of the three investments. Assuming that all three investment opportunities have the same level of​ risk, calculate the effective annual return for each​ investment, and select the best investment choice

What is the effective annual return for investment​ one, a​ five-year investment with a cost of ​$850 and a promised payout of $ $1,700 at​ maturity?

What is the effective annual return for investment​ two, a​ seven-year investment with a cost of ​$850 and a promised payout of $2,125​?

What is the effective annual return for investment​ three, a​ ten-year investment with a cost of ​$850 and a promised payout of $4,080​?

Statistics

EXERCISE 8. A fair pair of dies is to be cast once. What is the probability of getting a) 7, b) 11, c) 7 or 11, d) a sum divisible by 3? Answer. a) 1/6. b) 1/18. c) 2/9. d) 1/3. EXERCISE 9.One card is selected from an ordinary deck of playing cards. What is the probability of getting a) a queen, b= a jack, c= either a queen or a jack, d) a queen or a red card, e) a face card? Answer. a) 4/52. b) 4/52. c) 8/52. d) 28/52. e) 12/52.

EXERCISE 10. In a certain community, the probability that a family has a television set is 80%; a washing machine 50%; both a television set and a washing machine 45%. What is the probability that a family has either a television set or a washing machine or both? Answer. 85%.

EXERCISE 11. In a state lottery, a three-digit number is randomly selected between 000 and 999 inclusive. Find the exact probability that the number selected is less than 100 or greater than 900. Answer. 19,9%.

EXERCISE 12. A labor study involves a sample of 12 mining companies, 18 construction companies, 10 manufacturing companies and 2 wholesale companies. If a company is randomly selected from this sample group, find the probability of getting a mining or construction company. Answer. 61/366.

EXERCISE 13. Two cards are to be drawn without replacement from an ordinary deck of playing cards. What is the probability that both of the cards drawn are aces? Answer. 12/2652.

EXERCISE 14. Of all students attending a given college, 40% are males and 4% are males majoring in art. A student is to be selected at random. Given that the selected student is male, what is the probability that he is an art major? Answer. 10%

EXERCISE 15. Two cards are to be drawn without replacement from an ordinary deck of playing cards. What is the probability a) that the first card to be drawn is a queen and the second card is king? b) of drawing a combination of queen and king? c) that neither of the two cards will be queen? d) that neither of the two cards will be queen or a king? Answer. a) 16/2652. b)32/2352. c) 2256/2652. d) 1892/2652.

EXERCISE 16. Urn A contains 4 white and 3 red marbles, urn B contains 2 white and 5 red marbles. A marble is to be selected from urn A and another marble is to be selected from urn B. What is the probability that the two marbles selected are white? Answer. 8/49.

Please show your workings. I have shown the possible answer already. Thank you!

Consider two 50 MW power generating plants. One plant is fueled by combustion of coal, the other by solar energy. Using the concept of exergy, explain why the ecological impacts of the solar power process are lower than the coal fired process. Use words and diagrams in your answer

In your pocket, you have seven coins: 2 ten cent pieces, 2 fifty cent pieces, 2 one dollar pieces and 1 two dollar piece. You simultaneously choose two coins from your pocket (before you can feel the difference between any of them). Let ? represent the value of the two coins (in cents) that you select from the pocket. a) NEATLY Create a probability distribution for ? and ?(? = ?). HINT: Consider using a tree diagram to represent the value of the two coins before creating the distribution table of the value in cents.

Hugo Industries is considering investing in one of two capital investment alternatives. The first alternative is to automate the finishing and painting operations. This alternative will require an investment of $380,000. This alternative is expected to result in labor cost savings of $65,000 per year for each of the next 10 years. The second alternative is to invest in new machining equipment with a cost of $280,000. The new machining equipment will have a seven-year useful life and a $35,000 salvage value. The new machining equipment is expected to generate additional revenues of $60,000 per year for the next seven years. Hugo Industries desired rate of return is 10 percent.

Required:

1. Determine the net present value of each of the two capital investment alternatives.

2. Compute the present value index for each of the two alternatives.

3. Which investment alternative will yield the higher rate of return and why?

8. if the project duration needs to be reduced then

a. the activity with the lost cost should be selected

b. activity which is currently undergoing should be selected

c. activity with the highest cost should be selected

d. activity on the critical path should be selected

.

9. it does not make any sense to crash if

a. if there is no critical activity left

b. project crashing cost is equal or more than saving

c. project is more than 75% compelet

d. project crashing cost can not be calculated

.

10. forecast errors can not be attributed to

a. sudden change in trend

b. past sales data

c. random variation

d. change in business environment

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $875 per set and have a variable cost of $430 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-priced clubs sell at $1,100 and have variable costs of $620. The company will also increase sales of its cheap clubs by 15,000 sets. The cheap clubs sell for $400 and have variable costs of $210 per set. The fixed costs each year will be $9,300,000. The company has also spent $1,000,000 on research and development for the new clubs. The plant and equipment required will cost $29,400,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,400,000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 14 percent.     
Suppose you feel that the values are accurate to within only ±10 percent.

1)What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (Negative amounts should be indicated by a minus sign.

2) Create an active spreadsheet that calculates the NPV in each scenario by generalizing the uncertainty to unit price, variable costs and fixed costs.

3) how the NPV changes when the discount rate (cost of capital) changes to 16%

4) Calculate the expected NPV and the standard deviation of the NPV

5) Calculate the coefficient of variation

6) Calculate the accounting breakeven quantity in every scenario.

7) Calculate the financial breakeven quantity in every scenario.

8) Calculate the cash breakeven quantity in every scenario.

9) explain whether this project should be undertaken.

Project 1 Prepare job costing information for the following: Joseph runs an electrical contracting business and employs six electricians. He is only involved in supervision but on occasion will assist if needed. He charges direct labour hours at $45.00 per hour. Three of Joseph’s electricians are working on a job that involves wiring and fitting fixtures in a new house for Mr and Mrs Fleet. All materials and fixtures used have come from inventory. Each electrician spends half an hour at the beginning of each day on administration tasks and travels for half an hour to get to the job. They also spend half an hour at the end of the day undertaking administrative tasks. If they finish a job late afternoon and there is not enough time to start another they return to base and fill the time with other administrative tasks. Geoff Smith is responsible for the initial wiring. He calculates that he will need two rolls of electrical cabling and that it will take him 12 hours to complete the job. He works on the job on 15/10/11 and 18/10/11. He completes a materials requisition form and the cost per roll of electrical cable is $85.00. Peter Jones is responsible for fitting all fixtures. He has to fit 23 double power points and 15 down lights. Takes seven hours, so he works for longer to get it done in one day (there are no overtime penalties to worry about). He works on the site on 18/10/11. His materials requisition form shows that the power points are $7.50 per unit and the down lights are $25 each. Brian Brown is the senior electrician and he wired the switchboard, the circuit breakers and checked the work undertaken by the others. He expected this to take about four hours but he was there for seven hours because of problems encountered. He began his work on 22/10/11 and completed the remaining four hours on 25/10/11. The switchboard cost was $190.00 and the circuit breakers were $19.00 each. Twelve were needed. Brian took the afternoon of the 22nd and the morning of the 25th off for recreation leave. He went straight from the job to take his leave and went to the job from his leave without going to the workshop. Recreation leave is costed as administration. Each electrician normally starts at 8.30 am and has lunch from 12.30 until 1.00 pm. At the beginning of the financial year Joseph examined all of his overhead costs; vehicle leases, rent on premises, inventory, replacement of specialised equipment, depreciation, indirect labour, indirect materials, salary on-costs and insurance. These include his fixed and his variable costs. He calculated overall costs to be $662,500. 1 If each of his six electricians worked 46 weeks at 40 hours per week, what are his overhead costs? Complete the jobsheets, the Job cost form for each electrician and the job cost form report.

What is the initial concentration of Bleach if you used 5% in a Run where 2 mL's are used with 25 mL's of Dye?

Answer: 0.72 M

For this experiment, it is important to:

a) Make the concentration of Dye large compared to that of the Bleach
b) Make the temperature of all the runs the same
c) Change the activation energy for each trial
d) Change the temperature for each trial