Ch.11 Derivatives

State whether you agree or disagree with the following statement. Explain why.

“You. expect. volatility. of a stock’s. returns .to .double. in the. near future. but you. are not sure if the stock. will go. up or down .in value. The. market. consensus. is that the volatility. will remain. the same. If you want. to speculate. on your expectation., you should consider buying. (as opposed to selling) both call and put options on this stock (as opposed to only calls or only puts) before the anticipated increase in volatility.”

(Note: You are only considering call and put positions on this stock. You are not considering other ways to profit from your expectation, such as buying or short selling the stock itself.)

Glycine and proline are both non-polar amino acids, and both are very likely to be found at the surface of proteins. What physical characteristic of each is responsible for this observation?

1) Both glycine and proline are small.
2) Glycine is small, and proline is rigid.
3) The side chains of both these amino acids make favorable interactions with molecules near the surface of proteins.
4) Both amino acids make strong interactions with each other and therefore are likely to be found next to each other in a protein.

The EU Central Bank is worried that with Brexit and decreasing GDP growth rates in Germany it will have to take action in 2018. Given that the Central Bank’s risk (i.e. discount) rate is near zero what actions will be taken?

a. Explain the actions you expect the Central Bank to take and explain in macroeconomic measurement, modeling and movement terms what the Central Bank’s actions will have on EU exchange rates and exports with the U.S.

b. Use macro models and macro movement sequences to explain what actions youexpect the FED to take in response to the actions of the EU Central Bank and what movements in U.S. GDP and inflation rates will occur by the end of 2018.

Q.7 MRI machine uses magnetic field to create detailed images of human soft organs. Can you
elaborate the basic concept of working of MRI scanner? How the strong magnetic field is
produced in MRI scanner to scan the organs? Discuss the role of radio waves in MRI machines?
Write down major parts used in MRI machine. What would happen if the north-pole end of a bar
magnet is held near a positively charged piece of plastic? Justify your answer. X-ray machine
and MRI machine do the same job of human organ scanning. Analyze both the machines and
discuss three merits and demerits of it.

(Include full solutions)You and your friend Paul want to have a bet on how fast it can take to reach another friend Peter who is near the star Sirius B. Knowing that the star has a proper length of 8.6 light years from Earth, Paul thinks that since the maximum speed of your ship is 70% that of the speed of light, it will take about 9 years to get there. However, you reason that around 12 years will make more sense.

a)      Who is right from the perspective of you and Paul?

b)      When you reach Peter and explain the bet, he disagrees about who was right, why is that?

When considering buildings, it is important to identify the natural frequencies of beams. The implication will be that rotating equipment (e.g. pumps, compressors, washing machines, etc.) are selected so that the natural frequency of the beam is not excited thus brining the entire structure into resonance and causing damage.

A beam will have an infinite number of natural frequencies. The natural frequencies of a beam are the roots of a characteristic equation (which can be obtained using various analytical methods). Consider a beam whose characteristic equation is given by:

cos(0.1012x)cosh(0.1012x)=1

where x is the natural frequency in Hz.

Problem :

Use the Newton-Raphson method to find the natural frequency of the beam near 46 Hz.

An 11-year-old boy presents to the emergency department with low back pain and a palpable mass on his right side near his hip. His parent also reports intermittent, low grade fever and weight loss over the past 3 months. After a careful physical examination, laboratory studies, and imaging studies, a diagnosis of Ewing sarcoma is determined.

1. Outline the process that has most likely occurred in his body.

2. What would you expect for clinical manifestations?

3. What diagnostic tests were used and what do these tell you?

4. What treatment measures would you anticipate?

When the rocket is on earth and lifting off and burning fuel, which of the following is or are conserved? Mark all that apply and provide a brief 1-2 sentence justification of your choices.  Momentum of the rocket  Mechanical energy of the rocket  Momentum of the rocket + exhaust + Earth system  Mechanical energy of the rocket + exhaust + Earth system When the rocket no longer burns fuel (but is still near Earth), which of the following is or are conserved? Mark all that apply and provide a brief 1-2 sentence justification of your choices.  Momentum of the rocket  Mechanical energy of the rocket  Momentum of the rocket + exhaust + Earth system  Mechanical energy of the rocket + exhaust + Earth system And I need a proper justification

An object 5 centimeters high is placed 15 cm in front of a converging lens with focal length 5 cm. Using graph paper (turn the paper so that the long side is horizontal) and a straight edge, draw appropriate rays to locate the image. Chose a scale (tell me what it is!) such that the lens is in the center of the page and the object is near the left side of the page a. Is the image real or imaginary? Explain your conclusion b. What is the height of the image? c. Where is the image located? d. What is the ratio (image height)/(object height)? e. Compare your results with those predicted by the lens equation 1/f = 1/p + 1/q

3) Assume Disney stock is trading at $100/share today but you believe its price will fall in the very near future to $80/share. If this is all you believe and assuming you want to make money, describe in great detail how you could profit from this belief. Make sure to use the correct terminology.

4) Assume you buy a $1,000 Par, 5% coupon, 10-year bond has when its trading at a Yield To Maturity (YTM) of 4%. If you sell it two years later (when it has a maturity of 8 years) when it’s YTM is 3.5% what is your Profit or loss in dollars, _____________________