Questions
Suppose you short-sell 100 shares of IBM, now selling at $200 per share.

 

  1. Suppose you short-sell 100 shares of IBM, now selling at $200 per share.

 

a. What is your maximum possible loss?

b. What happens to the maximum loss if you simultaneously place a stop-buy order at $210?

2. Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share.

  1. What is the remaining margin in the account?

b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?

3. You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately.

4. You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.

  1. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position?
  1. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?

 

 

In: Finance

13. The inverse demand function for cantaloupes is defined by the equation p = 305 -...

13. The inverse demand function for cantaloupes is defined by the equation p = 305 - 5q, where q is the number of units sold. The inverse supply function is defined by p = 8 + 4q. A tax of $45 is imposed on suppliers for each unit of cantaloupes that they sell. When the tax is imposed, the quantity of cantaloupes sold falls to

A. 28.
B. 33.
C. 21.75.
D. 26.
E. 30.50.

14. The price elasticity of demand for a certain agricultural product is constant (over the relevant range of prices) and equal to -2. The supply elasticity for this product is constant and equal to 3. Originally the equilibrium price of this good was $45 per unit. Then it was discovered that consumption of this product was unhealthy. The quantity that would be demanded at any price fell by 100%. The percent change in the long-run equilibrium consumption of this good was

A. -100%.
B. -64%.
C. -20%.
D. -60%.
E. There is not enough information to determine the answer.

15. Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 2 coconuts for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by S(ps) = 100ps, where ps is the price received by suppliers. The demand for coconuts by the king’s subjects is given by D(pd) = 6,000 - 100pd, where pd is the price paid by consumers. In equilibrium, the price received by suppliers will be

A. $30.
B. $18.
C. $90.
D. $27.
E. None of the above

In: Economics

Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an October...

Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an October expiration call option with exercise price $105.

APPLE [Underlying Stock Price = $101.05]

Expiration Strike Call Put

September 95 6.20 0.21

October 95 6.35 0.33

September 100 2.20 1.18

October 100 2.62 1.55

September 105 0.36 4.35

October 105 0.66 4.75

a-1. If the stock price in October is $106, will you exercise your call?

Yes
No

a-2. What is the net profit/loss on your position? (Negative amount should be indicated by a minus sign.)

(Click to select)Net lossNet profit            $

a-3. What is the rate of return on your position? (Round your answer to 2 decimal places.)

Rate of return             %

b-1. Would you exercise the call if you had bought the October call with the exercise price $95?

Yes
No

b-2. What is the net profit/loss on your position? (Input the amount as a positive value.)

(Click to select)Net lossNet profit            $


b-3. What is the rate of return on your position? (Round your answer to 2 decimal places.)

Rate of return             %            

c-1. What if you had bought an October put with an exercise price of $105 instead? Would you exercise the put at a stock price of $105?

Yes
No


c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)


Rate of return             %

In: Finance

Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock...

Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $24. Calculate the exercise value of the firm's warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) $30, (4) $100. (Hint: A warrant's exercise value is the difference between the stock price and the purchase price specified by the warrant if the warrant were to be exercised.) If your answer is zero, enter "0". Round your answers to the nearest dollar. (1) $20 $ (2) $25 $ 1 (3) $30 $ 6 (4) $100 $ 76 Assume the firm's stock now sells for $20 per share. The company wants to sell some 20-year, $1,000 par value bonds with interest paid annually. Each bond will have attached 50 warrants, each exercisable into 1 share of stock at an exercise price of $25. The firm's straight bonds yield 10%. Assume that each warrant will have a market value of $3 when the stock sells at $20. What coupon interest rate must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.) Do not round intermediate calculations. Round your answer to two decimal places. % What dollar coupon must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.) Do not round intermediate calculations. Round your answer to the nearest dollar. $

In: Finance

A 76.0076.00 pound flask of mercury costs $132.50.$132.50. The density of mercury is 13.534 g/cm3.13.534 g/cm3....

A 76.0076.00 pound flask of mercury costs $132.50.$132.50. The density of mercury is 13.534 g/cm3.13.534 g/cm3.

Find the price of one cubic inch of mercury by calculating intermediate values.

What is the price of one pound of mercury?

$

What is the price of 1 g of mercury?

$

What is the price of 1 cm3 of mercury?

$

What is the price of 1 in3 of mercury?

$

It takes 2.500 in32.500 in3 of mercury to make one manometer. Find the price of the mercury used to make 2121 manometers by first calculating the cost of mercury for one manometer.

What is the price of mercury used to make one manometer?

$

What is the price of mercury used to make 21 manometers?21 manometers?

$

In: Chemistry

You are given the sample mean and the population standard deviation. Use this information to construct...

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals. A random sample of 6060 home theater systems has a mean price of ​$135.00135.00. Assume the population standard deviation is ​$15.8015.80. Construct a​ 90% confidence interval for the population mean.

The​ 90% confidence interval is ​(_,_​). ​(Round to two decimal places as​ needed.)

Construct a​ 95% confidence interval for the population mean. The​ 95% confidence interval is ​(_,_). ​(Round to two decimal places as​ needed.) Interpret the results.

Choose the correct answer below.

A. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

B. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price

In: Statistics and Probability

1.) Case: You were assigned to render service to a community in Zambales. One of the...

1.) Case: You were assigned to render service to a community in Zambales. One of the families you are visiting is Untal family. Aeta family from Botolan. Your first home visit yielded the following data: *Mrs. Untal, 18 years old and a plain housewife, is 7 months old pregnant for her 2nd child. *Mr. Untal, 19 years old, works as a helper to a fruit and vegetable dealer and earns Php 1000/week. *Husband and wife were observed to be distant as Mrs. Untal recently discovered that Mr. Untal had been involved in gambling with fellow workers. Their 1st child named Undoy who is 2 years old, weights about 1.5 kg. below the average weight for a child of his age. *The following were observed in the family’s home and environment: a small plastic bag hanging on the wall serves as the family’s garbage container. This plastic bag was observed to be emitting foul odor and with flies all over it. Question: Based on the case about Mrs. Untal, which of the following health problem would be most appropriate for the nurse to utilize a criterion reference objective?

CHOICES:

A. Health threat: Care-giving burden

B. Readiness for enhanced capability of parenting

C. Poor home Environment: unsanitary waste disposal

D. Unhealthful lifestyle: alcohol drinking

In: Nursing

Maria is 29 years old, five foot seven, and reports a pre-pregnancy weight of 140 pounds...

Maria is 29 years old, five foot seven, and reports a pre-pregnancy weight of 140 pounds (BMI =22). She is in her first trimester of pregnancy at 11 weeks and is in good health. If Maria were your friend, you would recommend she discuss these questions with a healthcare provider. However, as a way to review key concepts in this chapter, can you answer Maria’s questions?

1. How much weight am I supposed to gain throughout my pregnancy? Is it okay that I’ve gained only two pounds so far?  How many additional Calories will I need in the 2nd and 3rd trimesters?

2. How much additional protein do I need during my pregnancy? I take a multivitamin pill daily that contains 400 mcg of Folic Acid. Do I need extra amounts of folic acid while I’m pregnant? If so, how much more? Why is getting adequate folate during pregnancy so important?

f. (3 pts) Do I need to take an iron supplement? Why, or why not? If so, how much?

g. (2 pts) I usually go for a 30-minute walk with my husband after dinner. Is it okay to keep walking throughout my pregnancy? Are there any exercises that I should avoid while pregnant?

In: Nursing

Clinton Public Company Limited placed an advertisement on their web page as follows;     “Anyone interested in...

Clinton Public Company Limited placed an advertisement on their web page as follows;    

“Anyone interested in going to the moon? We can provide this service to you at a cost of Five million dollars. Call 800-MOON and book your flight.”

Donald’s dream since he was a kid is be the first in his family to go to the moon. He heard about the advertisement, via a friend and immediately logged on to Clinton’s web page for further details. Donald immediately thereafter called 800-MOON and booked his trip for December 22nd 2020, because he wanted to spend Christmas on the moon.

Donald’s wife Daisy subsequently discovered what her husband planned to pursue for the Christmas holidays and is furious. She was hoping that he should use his available monies to buy her a brand new Lamborghini. She confronted him on the issue and after a few hours of arguments, he agreed to buy her the Lamborghini and forsake his much-anticipated trip to the moon.

Donald called Clinton Public Company Limited and informed them that he no longer desired to go to the moon because of unforeseen circumstances. Clinton’s Customer Service Representative informed him that he had an agreement with them, because he accepted their offer when he called and booked his flight.

Donald is confused and is seeking your legal advice on this matter.

Use IRAC method and a case to answer.

In: Economics

7) Suppose that a bond is purchased between coupon periods. The days between the settlement date...

7) Suppose that a bond is purchased between coupon periods. The days between the settlement date and
the next coupon period are 90. There are 182 days in the coupon period. Suppose that the bond purchased
has a coupon rate of 6.8% and there are 8 semiannual coupon payments remaining. The par value of the
bond is $100.
a. What is the full price for this bond if a 6.4% annual discount rate is used?
b. What is the accrued interest for this bond?
c. What is the clean price of the bond?

In: Finance