6. [Call option value] A one-year call option contract on SUNNY Co. stock sells for $845. In one year, the stock will be worth $64 or $81 per share. The exercise price on the call option is $70. What is the current value of the stock if the risk-free rate is 3%? (Note that one contract involves 100 shares of stock)
In: Finance
According to the census bureau publication: current construction reports, the mean price of new mobile homes is 63,500. The standard deviation of the prices is 5,500.
a). For samples 100 new mobile homes, determine the mean and standard deviation of all possible sample mean prices (hint: find u-x and o-x)
b). Repeat part a for samples of size 200
In: Statistics and Probability
| Maturity | April 3, 2019 |
| Coupon (current) | 5.5% |
| YTM | 5.5% |
| Callable? | Yes (currently callable) |
| Call Price | 102 |
You are an interest rate contrarian - unlike the rest of the market, you project that 10-year Treasury Note rates will decrease by 100 bps in one year. In your view, is it a good or bad time to buy this bond?
In: Finance
Explain the shortest seek time first, first come first serve, scan, and c scan algorithms of storage management algorithms with the single of the sequence (93, 176, 42, 148, 14, 180).
Draw good diagrams and CALCULATE the total distance traveled and the total waiting time.
initial position is at 50
In: Computer Science
Nabeel is in crisis due to loss in business. Suppose you are a
sugar mill owner, Nabeels asks you to provide him with 100 bags of
sugar on credit basis and that he will pay you Rs. 50000 (the price
of 100 bags of sugar) in one month on 01-october-2020.
You are required to buy raw material worth 100,000 for your mill
from Nasir. For which you told Nasir that he will be paid on
01-October-2020. Create a negotiable instrument in light of the
above scenario settling your accounts receivable with Nabeel and
accounts payable with Nasir. Also state the essentials of the
negotiable instrument that you selected to complete this
transaction
In: Accounting
Smith Company sold merchandise in the amount of $5,800 to Batter Company on September 1, with credit terms of 2/10, n/30. The cost of the merchandise is $2,400. On September 4, Batter Company returns some of the merchandise, which were put back into Smith's inventory. The selling price and the cost of the returned merchandise are $800 and $500, respectively. (Assume both companies use the perpetual inventory method.) Batter Company's journal entry on September 8, when they pay the amount due, will include:
A) Credit Cash $5,194
B) Credit Sales Discounts $100
C) Debit Accounts Payable $5,000
D) Credit Purchase Discounts $100
In: Accounting
The stocks in companies A and B both cost 100 USD today. We let
X
and
Y
denote
the stock price in the two companies one year from now. We assume that X and Y are independent
random variables with
E
[
X
] = 110
,
E
[
Y
] = 110
,V ar
[
X
] = 100
,V ar
[
Y
] = 400. We want to invest 10
million USD in the two stocks. Let p denote the fraction invested in company A.
a. Write down the equation for the value of the portfolio one year from now.
b. What is the expected value of portfolio and its variance one year from now?
In: Statistics and Probability
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price ........................................................... $100
Units in beginning inventory .......................... 0
Unit produced ...................................................... 5,500
Unit sold ................................................................. 5,400
Unit in ending inventory ................................... 100
Variable costs per unit:
Direct materials .............................................. $23
Direct labor ...................................................... $25
Variable manufacturing overhead ........... $ 2
Variable selling and administrative ......... $ 9
Fixed costs:
Fixed manufacturing overhead .................. $137,500
Fixed selling and administrative ................ $ 70,200
The total contribution margin for the month under variable costing is:
Select one:
a. $270,000
b. $135,000
c. $83,900
d. $221,400
In: Accounting
In September 2021 Apple shares are priced at $180 a share. You believe that they are considerably overvalued and are worth only $65 a share. June 2022 the put option premium at a strike price of $140 a share are currently priced at $4 per share. Each put contract is based on 100 shares.
(i) What is the intrinsic value of the put option per share?
(ii) What is the time value of the put option per share?
(iii) What is your net dollar profit (+) or loss (-) as a holder of the put contract (based on a contract size of 100 shares) if we arrive at expiry in June and you are wrong and Apple shares are selling for $200?
In: Accounting
2. Show and explain what will be the first thing that will happen in the market for frozen yogurt when each of the following occurs. Please show the original curves and the change so that it is clear what the change is.
In: Economics