Economic Growth

Using 2017 as a base year, calculate;

1) The GDP deflator

2) Nominal Economic growth

3) Real economic growth

4) Give reasons why Real GDP per capita may overstate the well-being of a countries inhabitants?

Calculate a price index for 2018, 2019, and 2020 using the following information about prices. Let the market basket consist of the price of one pizza pie, two sodas, and four caffe lattes. Let the year 2018 be the base year (with an index value of 100). See the instruction video, "inflation.ppsm".

A. Calculate the price index for each year. To compute the price index for each year, you must first compute cost of market basket for each year (Show mathematical steps in detail to receive full credits).

B. How much inflation occurred between 2018 and 2019? Between 2018 and 2020? In other words, what is the change in the price index between 2018 vs 2019 and 2018 vs 2020?

1. Show mathematical steps in detail

2. interpret what the computed numbers (inflation rate) indicate in detail

Who is the Protagonist and who is the Antagonist in the following short story?

How does the story let you know that one character is the protagonist and that another character is acting as the antagonist?

What specific cues does the story provide for the reader to know the roles of the characters in the conflict, theme, and plot?

Why are the characters not easy to define as good and bad?

What cues does the author provide for the reader to decide individually about the meaning and moral of the story?

The King of Sharks: A Native American Myth from Hawaii retold by S. E. Schlosser One day, the King of Sharks saw a beautiful girl swimming near the shore. He immediately fell in love with the girl. Transforming himself into a handsome man, he dressed himself in the feathered cape of a chief and followed her to her village. The villagers were thrilled by the visit of a foreign chief. They made a great luau, with feasting and games. The King of Sharks won every game, and the girl was delighted when he asked to marry with her. The King of Sharks lived happily with his bride in a house near a waterfall. The King of Sharks, in his human form, would swim daily in the pool of water beneath the falls. Sometimes he would stay underneath the water so long that his bride would grow frightened. But the King of Sharks reassured her, telling her that he was making a place at the bottom of the pool for their son. Before the birth of the child, the King of Sharks returned to his people. He made his wife swear that she would always keep his feathered cape about the shoulders of their son. When the child was born, his mother saw a mark upon his back which looked like the mouth of a shark. It was then she realized who her husband had been. The child's name was Nanave. As he grew towards manhood, Nanave would swim daily in the pool beside the house. Sometimes, his mother would gaze into the pool and see a shark swimming beneath the water. Each morning, Nanave would stand beside the pool, the feathered cloak about his shoulders, and would ask the passing fishermen where they were going to fish that day. The fisherman always told the friendly youth where they intended to go. Then Nanave would dive into the pool and disappear for hours. The fishermen soon noticed that they were catching fewer and fewer fish. The people of their village were growing hungry. The chief of the village called the people to the temple. "There is a bad god among us," the chief told the people. "He prevents our fishermen from catching fish. I will use my magic to find him." The chief laid out a bed of leaves. He instructed all the men and boys to walk among the leaves. A human's feet would bruise the tender leaves, but the feet of a god would leave no mark. Nanave's mother was frightened. She knew her son was the child of a god, and he would be killed if the people discovered his identity. When it came turn for the youth to walk across the leaves, he ran fast, and slipped. A man caught at the feathered cape Nanave always wore to prevent him from being hurt. But the cape fell from the youth's shoulders, and all the people could see the shark's mouth upon his back. The people chased Nanave out of the village, but he slipped away from them and dived into the pool. The people threw big rocks into the pool, filling it up. They thought they had killed Nanave. But his mother remembered that the King of Sharks had made a place for her son at the bottom of the pool, a passage that led to the ocean. Nanave had taken the form of a shark and had swum out to join his father, the King of Sharks, in the sea. But since then, the fishermen have never told anyone where they go to fish, for fear the sharks will hear and chase the fish away.

The price of a stock is $60. The price of a one-year European put option on the stock with a strike price of $45 is quoted as $10.5 and the price of a one-year European call option on the stock with a strike price of $75 is quoted as $7.5. Suppose that an investor buys 100 shares of stock, shorts 100 shares of call options, and buys 100 shares of put options.

(a) Show the profit (loss) table for the combined position (long stock, long put, and short call) if ST $75.

(b) Draw the profit (loss) graph for (a), illustrating how the investor’s profit or loss varies with the stock price over the next year.

Being a personal finance counselor, Your very first client is a young couple who want to put their financial business in order and develop a plan for their retirement and future family needs. Both the husband and the wife are 31 years old and in stable employment. They want to retire together at the age of 67. They want you to help them in their financial planning by answering a series of questions, as follows:

1. Why is the fundamental reason that money has “time value”? Does money have time value if (a) inflation rate is zero, and (b) market interest rate is zero?
2. How do you explain to your clients why it is better to start saving now than wait a few years before starting, if they want to achieve a certain amount at retirement? [Hint: convince them from how it may affect their budgets]

4. You have just graduated from nursing school and started a job at the local correctional facility in the health clinic. Your first client is a female who has just been transferred to the correctional facility today. She has a diagnosis of terminal cancer. You learn she has three children and a husband that are devastated about her incarceration. The client reports being extremely worried about her family.

a. What are the potential blocks to the assessment process with this client?

b. What are potential nursing diagnoses for this client? What interventions could be used for each diagnosis (use the textbook for support)?

c. What strategies would you adopt when working with the client’s family? Provide examples of how you could implement these strategies.

Classify each of the following random variables as discrete or continuous. a) The time left on a parking meter So, we want to ask do we COUNT the time left on the parking meter or do we MEASURE it. We measure the time, so measuring is continuous. b) The number of bats broken by a major league baseball team in a season We can count the number of physical bats there broken during a season. Since we can COUNT it, we know that counting is discrete c) The number of cars in a parking lot at a given time We can count the number of cars in the parking lot. COUNTING means discrete d) The price of a car We don't sum up the prices of various cars, but we measure them (often to compare one to the other). MEASURING means continuous. e) The number of cars crossing a bridge on a given day Not too terrible - we count the number of cars crossing the bride, therefore COUNTING we know is discrete. f) The time spent by a physician examining a patient Time isn't counted to get a sum, we measure time and see who waited more or less time than others. MEASURING means continuous g) The number of books in a student's bag Want to know how many books are in a student's bag? Gotta COUNT them, which - we know - means discrete Hey that was awesome. No math!! Thoughts about continuous and discrete variables? Ready to rumble with these concepts? Sound off!

Problem 5-3 Order Books (LO2, CFA1)

The following order book exists for a particular stock. The last trade on the stock was at $55.63.

a.  If you place a market buy order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.)

b. If you place a market sell order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.)

c. Suppose you place a market order to buy 300 shares. At what price will it be filled? Choose the appropriate answer.

• 100 shares at $55.70 and 200 shares at $55.69

• 300 shares at $55.63

• 100 shares at $55.65 and 200 shares at $55.66

• 300 shares at $55.70

1. You apply for a home equity loan. The lender gets an appraisal on your home, showing a value of $183,500. You have a first mortgage with a current balance of $87,435. Based on a 75% LTV ratio, what is the maximum line of credit you can get?

2. Assume you buy 100 shares of stock at a price of $63.75 per share and incur brokerage fees of $200. You own the stock for 5 years and receive dividends of 50 cents per share at the end of each quarter. Immediately after receiving the 20^th quarterly dividend, you sell the stock at a price of $48.63 per share and incur brokerage fees of $200. Calculate your rate of return. (IRR)

2. Look at the Apple options from below. Suppose you buy an October expiration call option with exercise price $100.

1. If the stock price in October is $105, will you exercise your call? What are the net profit and the rate of return if you exercise the call?  
2. Will you exercise the call if you had bought the October call with exercise price $95?
3. Will you exercise the option if you had bought an October put with exercise price $100?