A security is currently trading at $100. The six-month forward price of this security is $104.00. It will pay a coupon of $6 in three months. The relevant interest rate is 10% p.a. (continuously compounding). No other payouts are expected in the next six months. Show the exact strategy you will use to make an arbitrage profit. State the profit and show all cash flows arising from the strategy.

Suppose we have linear supply and demand functions for a good. At the price of 100 euros the requested quantity is 25 units of the good while the offered quantity is 50 units. When the price changes from 100 euros and comes to equilibrium the demand elasticity is -3 and the supply elasticity is 1.

1.Explain the signs of elasticity

2.Find the supply and demand functions

3.Find the price and quantity balance

An oil cartel effectively increases the price of oil by 100 percent, leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equilibrium at the same level of output and prices at the time of the shock. The central bank of Country A takes no stabilizing policy actions. After the short-run impacts of the adverse supply shock become apparent, the central bank of Country B increases the money supply to return the economy to full employment. Describe and compare both the short-run and long-run impact of the adverse supply shock on prices, output and unemployment in each country.

You may need to draw diagrams to determine the impact. However, do not provide diagrams with the answer. (125 words maximum)

Price per $100 - 99.390806

This is a 91-day T-bill with par value $100 issued on January 10, 2019 and maturing on April 11, 2019.

(a) Calculate the rate of interest that a purchaser of this bill would earn over the period, and convert this to an annual investment rate. Verify that your answer corresponds to the published investment rate.

(b) Calculate the discount rate and verify that your answer corresponds to the published high rate.

(c) Determine how much the investor would have paid for this asset if the investment rate was 1.5%. (Round to two decimal places)

(d) Determine how much the investor would have paid for this asset if the discount rate was 1.5%. (Round to two decimal places)

1) If the selling price per unit is? $100, total fixed expenses are? $600,000, and the breakeven sales in dollars is? $800,000, what is the variable expense per? unit?

2)

Mama's Favorite Appliances manufactures two? products: Food Processors and Espresso Machines. The following data are? available:

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The? company's production capacity is? 1,200 machine hours per month.

To maximize? profits, what product and how many units should the company produce in a? month?

A.

?3,600 Espresso Machines and 0 Food Processors

B.

?2,400 Food Processors and 0 Espresso Machines

C.

300 Food Processors and 675 Espresso Machines

D.

?2,400 Food Processors and? 3,600 Espresso Machines

Stock price today at $100. A binary PUT with strike of 85 is priced at $0.15. What is the implied standard deviation?

The purchase price of Property and Building was of 50 million (100 single rooms and restaurants with a total of 200 seats) purchased 10 years ago. Each year, 250,000 have been recorded as depreciation cost.

• The present value of Capital Stock is 14 millions, Retained Earnings 3.5 millions, Mortgage 30 millions, Other long term loan 3 millions, Working Capital 3 millions.

• We plan a refurbishment plan over the next 3 years of 2 million a year; the planned works are quite expensive as we change the entire furniture of the bedrooms and bathrooms. Based on this, we plan to depreciate this over 20 years using the straight line method.

• We are planning as well to build a second restaurant with terrace; investment cost has been budgeted to 2 millions, to be depreciated over 10 years using the straight line method.

Based on the information above, what is the depreciation cost of refurbishment?

A call option with strike price of $100 sells for $3 whereas a call option with strike price of $106 sells for $1. A ratio spread is a portfolio with the following characteristics: long on one call with Strike K1, shirt on 2 calls with Strike K2 (where K2>K1), Thsm, you create a ratio spread by buying one call option with the strike price of $100 and writing two call options with the strike price of $106. 1) perform a what if analysis for this ratio spread (what is the net profit if the stock price ends at 0,50 100, 103, 106, 120 and 1000?) What is the most you could lose in this strategy? What is the most you could make? What are the breakeven stock prices? make a graph showing net profit versus stock price expiration.

A company sells a product for a retail price of $100. It offers quantity discounts based on the table below

Write a program that asks user for enter the quantity of product they want to purchase. It should then display the discount amount (if any) and the total purchase amount after the discount. The output should be displayed with 2 decimal points as shown below.

See a sample output

Enter the quantity of the product you want to purchase: 30
Discount Amount: $ 600.00
Total Purchase Amount: $ 2400.00

Refer the rubric and coding standards documents. Make sure you submit by 11:59 pm of the due date. Make sure you write the analysis/design algorithm along with properly documented code. Do not forget to attach your SDM as either another document or as a submission text when you submit your homework