The current spot price of Amazon stock is $1,823 the current 1-year forward price is $1,944. The current 1-year risk free rate is 6.5% per annum with semiannual compounding. If there is a $20 transaction fee for the combination of all transactions made, paid today, can you make an arbitrage profit with 100 shares? If there is an arbitrage how much would you make? Otherwise prove that there is not an arbitrage.
In: Finance
In: Finance
In: Finance
Your US based company exports drendels to the rest of the world. The world market for drendles is highly competitive (so competitive that changes in production in the US do not impact the world price). The current price of a drendle is €100/drendle. Company's cost fix is C(q) =50,000+50q+0.02q2 in US dollars. If the exchange rate is $1.20/€ how much profit in US dollars does your firm make?
In: Economics
how exactly do you determine the miller indices for the first three peaks of a diffraction pattern? for cubic it makes sense for it to be (100) (110) (111) but for less symmetrical structures how do you determine which planes will have the lowest values. Specifically for structures such as tetragonal, rhombohedral and orthohrombic.
In: Chemistry
An 8-digit password is required to have exactly three 0’s. The other 5 digits can be any number 1-7, but numbers 1-7 may not be repeated. Write a program that lists all the possible outcomes. Provide your code and first 100 outcomes (Python).
In: Computer Science
A local factory making greeting cards employs only workers and machines. Let x1 represent workers and x2 represent machines. The firm’s production function is: f(x1, x2)=10*min(x1, 1/2x2)
a) Draw an isoquant representing a quantity of 100 units and an isoquant representing a quantity of 200 units. Label two points on each isoquant.
b) Suppose the firm wants to produce 300 cards. The price of an hour of labor is $20 and the price of a machine hour is $30 per hour. What will be the firm’s costs?
c) Suppose you notice the firm is using 45 worker hours and 100 machine hours. What could you recommend to the firm in order for them to decrease costs without decreasing output? How much money would you save the firm?
In: Economics
A firm is currently producing 80 units of output. At this level of output produced:
its average total cost is 100 (ATC = 100
) The market price per unit of output is 120
MR = 40 MC = 20
i. Is this firm making profits or losses? How much?
ii. Are they maximum profits? Why?
iii. If your answer to part ii was no, what does this firm have to do with maximize its profits?
A firm's total cost and marginal cost functions are
TC = 15Q^2+3Q - 25
MC = 30Q+3
Assuming that the market price is 183 and that the marginal revenue (MR) is also 183 ( it is constant at all output levels); how much output will this firm sell (produce) to maximize profits? What will be maximum profits for this firm?
In: Economics
FINANCE
MR. Smith buys 100 shares of XYZ stock with cash. His brokerage firm charges a commission of $10 per transaction. Mr. Jones also purchases 100 shares of XYZ stock. He borrows the amount needed to complete the purchase from a bank. The bank charges interest at the continuous risk-free rate of 4% (annually). Mr. Jones' brokerage firm charges a commission of 1% of each transaction amount. The current price of one share of XYZ stock is 18.94. Calculate the profit for both Mr. Smith and Mr.Jones assuming that they both sell all of their shares after 3 months (assume that Mr.Jones must use the proceeds of the stock sale to repay the bank loan). The price of one share of XYZ stock at the end of 3 months is 23.15.
In: Finance
A clothing brand plans to use a model to decide the
print run (offer) of
a new exclusive garment to maximize your profits. By policies
Your supplier can only produce one package with one of the
following
quantities 5,10,25,50 or 100 items with the following prices per
pledge
respectively 15,9,7,5,6,5,5 Additionally, it is known that the
curve of
manda of its exclusive products tends to be
D (x) = 100/x + 5
(a) Calculate the total cost of each garment package
(b) Determine the equilibrium price for each of the packages
(c) Calculate the total profits generated by each package when
sold
completely at equilibrium price
(d) Calculate the net gains by subtracting the total cost from the
total
of the package
(e) Determine which package is the most convenient
In: Economics