Depoul'' financial company purchased a call option on thr S&P 500 index expiring in one year permuim is quoted at 20. the exercise price of the option is 1300 and the current price of the assume the index declines by 5% in the first quarter , then increase by 3 % in each of the follwing , what is the net gain or loss of this transaction ? hint: multiply index by 250$ to find the contract).

Q3. You collected 10 years of daily data. Based on that you find first trading day of each month 's averagereturn is 50 bps. Mean return for all days is 4 bps. Stdev across all days is 100 bps. Stdev for first day of each month only is 125 bps.

Q3a. What is the mean return for trading days other than first day of the month? (3 points)

Q3b. Take the difference in sample mean for first day vs. other days. This is your point estimate for the difference b/w two types of days. What is that point estimate? What is stdev for the point estimate? (3 points)

Q3c. What is the probability of observing the point estimate above under the null hypothesis that the true difference is zero (this is known as p-value)? (2 points)

Q3d. What is the 95% Confidence interval for the point estimate? At 95% confidence, should you reject or accept that first days’ mean return is not different from other days of the month? (2 points)

Considering four stocks in the following table. Pt represents a price at the end of day t, and Qt represents the number of shares outstanding at the end of day t. At the beginning of day 2, stock C splits ten-for-one; and stock D splits one-for-two.

A. Calculate the rate of return on a price-weighted index of the four stocks for the first day ( t =0 to t =1).

B. Calculate the rate of return on a value-weighted index of the four stocks for the first day ( t =0 to t =1).

C. What must happen to the divisor for the price-weighted index at the beginning of day 2?  

D. Calculate the rate of return on a price-weighted index of the four stocks for the second day ( t =1 to t =2).

A 67-year-old female patient presents to the emergency room you work at complaining of shortness of breath and pain on the right side of her chest. Upon auscultation of the lung field during the physical exam, you note flatness and diminished breath sounds over the right lung. Her temperature is 101.3°F.

1. What are the possible causes of her symptoms? (What is your differential diagnosis?)
2. What tests might order to determine the specific cause of this patient’s symptoms? Why?
3. This patient’s husband tells you he does not understand why she feels short of breath. How might you explain to him the lung physiology that underlies her symptoms?

2. The mean height of American women in their twenties is about 64.3 inches, and the standard deviation is about 2.7 inches. The mean height of men the same age is about 69.9 inches, with standard deviation about 3.1 inches. Suppose that the correlation between the heights of husbands and wives is about r = 0.5.

1. What are the slope and intercept of the regression line of the husband’s height on the wife’s height in young couples? Interpret the slope in the context of the problem.
2. Draw a graph of this regression line for heights of wives between 56 and 72 inches. Predict the height of the husband of a woman who is 67 inches tall, and plot the wife’s height and predicted husband’s height on your graph

1/ You are working in Urgent Care; one of your patients, Mr. R. ha an advance directive and a do not resuscitate (DNR) order on his chart. Suddenly his wife rushes out of the room saying, “My husband has stopped breathing”. You automatically reach for the phone to call a Code. Then you remember the DNR; should you make the Code call? Explain.

2/ It has been said that health care providers do not make “cooperative” patients. Why?

3/ A member of your family has a disorder that can only be treated with extensive lifestyle changes. List specific suggestions for helping this relative make the necessary changes.

An elderly couple married for 45 years, faced with physical disabilities were forced to leave their home and live in an assisted living facility. While in the facility, they wanted to stay together as husband and wife in the same room. But the rules and regulations did not allow them to stay together in the same room. This occurred in the last decade. In 2006, changes were made and couples were allowed live together in the same room.

Discuss the major differences between the rights of consumers to live their life the way they choose while living in a facility, and the facilities rights to follow the rules and regulations dictated by the state and government to run their facility.

Identify the conflicts and ethical issues that develop and how can they be resolved.  

A.

There are three types of taxable income; 1. active, 2. portfolio, 3. passive.  Describe each (in your own words) and make sure you understand the tax implications of these incomes.

B.

Debra Ferguson received the items and amounts of income shown below during 2016. Help her calculate, (a) her gross income and (b) that portion (dollar amount) of her income that is tax exempt.

Salary                                                      $33,500

Dividends                                                  800          

Gift from mother                                       500

Child support from ex-husband                3,600

Interest on savings account                        250

Rent                                                            900

Loan from bank                                          2000

Interest on state government bonds            300