Roy constructs an options portfolio based on the MXC stock. He writes a call option with exercise price $74 and writes a put option with exercise price $70. Both options have the same expiration date

a. Draw the payoff diagram of this portfolio at option expiration as a function of MXC stock price at that time. b. What will be the profit/loss on this position if MXC is selling at $72 on the option expiration date? What if MXC is selling at $77? c. At what two stock prices will Roy break even on his position?

A population of values has a normal distribution with μ = 110.6 μ = 110.6 and σ = 74 σ = 74 . You intend to draw a random sample of size n = 157 n = 157 . Find P68, which is the score separating the bottom 68% scores from the top 32% scores. P68 (for single values) = Find P68, which is the mean separating the bottom 68% means from the top 32% means. P68 (for sample means) = Enter your answers as numbers accurate to 1 decimal place. Answers obtained using exact z-scores or z-scores rounded to 3 decimal places are accepted.

A retail giant, Mississippi, sells books on its website. The book Lisa Panner and the Accountant’s Ledger (LP for short) is sold in the hardcover version, paperback version, audiobook version, or the e-book version to be read on its proprietary device Ignite. It is known that no one buys both hardcover and paperback of LP, and no one buys both hardcover and e-book. It is also known that no customer buys all three of paperback, e-book and audiobook. Of the customers interested in LP, Mississippi has found that 15% have bought the hardcover, 35% have bought the paperback, 30% have bought the audiobook and 25% have bought the e-book. Furthermore, 40% have bought either the hardcover or the audiobook, and 10% have bought both the paperback and the audiobook.

(a) What fraction of the interested customers have bought both the hardcover and the audiobook?

(b) What fraction of the interested customers have bought exactly one of the paperback or the audiobook?

(c) (Somewhat hard) If 5% of interested customers have bought both audiobook and e-book, what fraction have bought only the audiobook? (Hint: Drawing the Venn diagram will be helpful. Try to break the set of customers who bought an audiobook into mutually exclusive sets so that you can use additivity.)

You are required to undertake an in-depth study of the Case Study and answer the questions that follows: ISSUU: Flousihing on Internet When it comes to doing global digital business, ISSUU sells digital products in the form of templates and extensions that are used with the open source content management system (CMS) Joomla. The Joomla CMS allows anyone with at least a limited knowledge pf Website construction or internet technologies to start a Web site. Joomla essentially puts advanced Web technology at the fingertips of 'newbies'. Current estimates suggest that Joomla is being used on 1.5 to 2 million Web sites globally. Andy Miller, a former member of the core developer group of the award winning Joomla CMS, started the ISSUU template club with the goal of making professional-looking Web sites available to the average Internet user. Competition in the industry is fierce. However, ISSUU attempts to differentiate itself from other template clubs through originally, a user-oriented focus, and flexibility of design. Currently, it is branching out into other different CMS markets, providing templates for other open source CMS solutions, such as Drupal, WordPress, and phpBB3. ISSUU sells its products directly to its customers through a membership system. Growth of the club is mainly organic. For each type of membership, ISSUU charges a different fee. Members are differentiating by whether they are light or heavy users (e.g., regular members vs. developer members), which is visible through the pricing schedule. Marketing efforts are targeted at the online community. To attract new customers, ISSUU uses an affiliate system and makes use of Google ads. The ISSUU template club was launched in 2006 and has experience exponential growth. According to Miller, "I started the ISSUU Template Club with a whopping three templates in the inventory. Membership has steadily grown since that time probably due to the increase in number of available templates. It's been a relatively consistent ride and 1 think a huge part of that is just due to how great, Joomla is and how it's popularity has risen. Sure, some templates are more popular that others, that is just the way these things work. 1 try to ensure that we provide a very well-rounded selection of designs, not just the same old "business" templates every month." How did the club get its start? Miller says, "I have been involved in Web development since my days in University, back in the early 90s, when hypertext was a new concept and gopher was the most common method of sharing information across networks. 1 was computer engineering major and quickly got caught up in the excitement around the internet. Anyway, long story short. I've been doing web development ever since." ISSUU is privately owned, Miller is the sole partner of the ISSUU Limited Liability Corporation (LLC). As much, he is also the day-to-day operational manager. Miller focuses on energizing his staff and creating a common goal for his employees-the success of the ISSUU template club. The organization can be characterized as flat and nonbereaucratic. It has full time staff of 12 and has 14 support staff. The support staff consists mainly of subcontractors and several volunteers. New staff are attracted straight from the ISSUU community or from online advertisement. Thus, the organizational structure is fluid and flexible. The organization retains specialists from different parts of the world, highly skilled in their respective fields. ISSUU presently has a user base of well over 40,000 registered members. It stands out because of its international orientation and collaboration. The team responsible for support and development of new templates and extensions is an international team consisting of members from around the globe- the United States, England, Italy, Holland, Germany, India, Canada, Poland, Greece and Japan-from different backgrounds and different age groups. All communication and information exchange between the employees of ISSUU and between ISSUU and its customers performed using the electronic superhighway. ISSUU attracts its customers from allover the globe; like its team; its customers come from different backgrounds, different age groups, and different countries. The target group of customers is, in essence, anyone who wishes to run a Web site using the Joomla CMS. ISSUU focuses mainly on development of templates for the different content management systems to which it caters. Other services provided are mainly in the area of support. Customer support is provided through an online forum in which ISSUU club members can post their template and extension-related questions and general problems with Joomla. The online community at ISSUU.com and its collaborative atmosphere is representative of open source ideals. It is one of the pillars of ISSUU's success. Your report should include: 1. What are ISSUU's business processes, and what information systems can be used to support these processes? 2. How can these systems improve ISSUU's business performance? 3. What is ISSUU's business-critical information system? 4. What information system could possibly improve ISSUU's business performance? A general description of the organization, its business concerns, and various approaches to managing, information and MIS currently adopted. You are expected to make extensive fieldwork, collecting information from the organization through studying available documents and literature, journals, websites, newsletter etc

A newly opened local restaurant has just finished a media blitz (Instagram, email, mobile, etc.) for new customers. Whenever prospective customers visited the restaurant the first time, they were asked to indicate what ads they saw in the past week. Some of these prospects came back and became the frequent customers, while some did not; thus, we have two populations: those who were the regular customers of this restaurant and those who were not. At the end of the 7-day campaign, a staff member performed the following tabulations.

Joined the Health Club Did Not Join the Health Club

Total visitors 80 35

Recalled Instagram ads 55 20

Recalled email ads 48 30

Recalled mobile ads 72 11

1. Use your knowledge of the formula and the test of the significance of the difference between two percentages to ascertain if there are any significant differences in this data. What are the implications of your findings with respect to the effectiveness of various advertising media used during the membership recruitment ad blitz?

1. A cafe specializes in short order meals; and, morning and afternoon snack breaks. It is open from 9:00 am until 4:00 pm. An office manager in a nearby high rise office building offers the owner a contract to provide her 50 employees with afternoon snack breaks for $2.00 each. Each employee would receive a drink and a snack item. The shop has an hourly capacity of 50 customers. The owner estimates that the variable costs of the afternoon breaks would be $1.20 each. Currently the afternoon service, starting at 2:00, is running at only 50 percent capacity, although the morning and noon activities are near capacity. At the present level of operations each meal/snack served is allocated a fixed cost of $0.25.

Required:

a. What nonfinancial factors should be considered by the owner?

b. Given your concerns listed in part a. and quantitative analysis, should the offer be accepted? Why or why not?

2. Doggie Dinner, Inc., currently manufactures three different types of scientifically balanced dog food. The firm is considering eliminating one of the three products. What factors should be taken into account in making this decision?

3. Explain the differences between short-run pricing decisions and long-run pricing decisions.

The WRL Company operates a snack-food center at the Grantley Adams Airport. On January 2, 2003, WRL purchased a special cookie cutting machine, which has been used for 3 years. WRL is considering purchasing a newer, more efficient machine. If purchased, the new machine would be acquired today on January 2, 2006. WRL expects to sell 300,000 cookies in each of the next 4 years. The selling price of each cookie is expected to average $0.50.

WRL has two options: (1) continue to operate the old machine, or (2) sell the old machine and purchase the new machine. The seller of the new machine offered no trade in. The following information has been assembled to help management decide which option is more desirable.

WRL has a 40% income tax rate. Assume that any gain or loss on the sale of machinery is treated as an ordinary tax item and will affect the taxes paid by WRL in the year in which it occurs. WRL has an after tax required rate of return of 16%.

Required:

Use the present value method to determine whether WRL should retain the old machine or acquire the new machine.                                                                      [17 marks]

Assume that the financial differences between the net present value of the two options are so slight that WRL is indifferent between the two proposals. Identify and discuss the non-financial and qualitative factors that WRL should consider. [5 marks]

“Discounted cash-flow techniques are relevant only to profit seeking organizations.” Do you agree? Explain. [ 3 marks]

I NEED HELP WITH THIS QUESTION!

THANKS IN ADVANCE!

Select three services: one high in search attributes, one high in experience attributes, and one high in credence attributes. Describe what product characteristics make them easy or difficult for customers to evaluate and suggest specific strategies that marketers can adopt in each case to facilitate evaluation and reduce perceived risk.

Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate:

Assume that the company had the following gross profit information for three representative customers:

The administrative records indicated that the activity-base usage quantities for each customer were as follows: