Consider two European call options on the same stock with the same strike price of $40. One option has a maturity of 1 month and the other has a maturity of 3 months. Which option should be more expensive?

1-month option

3-month option

The two options should have the same premium

More information is needed to determine which option should be more valuable

An industry has two firms-a Stackelberg leader and a follower. The price of the industry output is given by P = 40 - Q, where Q is the total output of the two firms. The follower has a marginal cost of $0. The leader has a marginal cost of $9. How much should the leader produce in order to maximize profits?

Select one:

a. 13

b. 11

c. 12

d. 9

e. 10

−7, 8, 8, 6, 10 find the variance step by step

The human resources manager of DataCom, Inc., wants to examine the relationship between annual salaries (Y) and the number of years employees have worked at DataCom (X). These data have been collected for a sample of employees and are given above.

1. Draw a normal probability plot of residuals by finding out the Z-score of the residuals. Use Excel. Plot Z-score at Y – axis and residuals at X – axis. Do the residuals seem normally distributed? Explain.

The Tiny Toy Company makes three types of new toys: the tiny tank, the tiny truck, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0 and 1.0 pounds, respectively. Rubber for one unit of each toy is 0.5, 0.5, and 1.0 pounds, respectively. Also, each tank uses 0.3 pounds of metal and the truck uses 0.6 pounds of metal during production. The average weekly availability for plastic is 16,000 pounds, 9,000 pounds of metal, and 5,000 pounds of rubber. It takes two hours of labor to make one tank, two hours for one truck, and one hour for a turtle. The company allows no more than 40 hours a week for production (priority #1). Finally, the cost of manufacturing one tank is $7, 1 truck is $5 and 1 turtle is $4; a target budget of $164,000 is initially used as a guideline for the company to follow.

a) Minimize over-utilization of the weekly available supply of materials used in making the toys and place twice as much emphasis on the plastic (priority #2)

b) Minimize the under and over-utilization of the budget. Maximize available labor hour usage (priority #3).

Formulate the above decision problem as a single linear goal program. Clearly identify your achievement vector (i.e., hierarchy of priority levels for the goals). Do not solve.

Sri Coffee Pty Ltd is considering investing in a new coffee bean roasting machine. The machine is estimated to cost $150,000 which can last for 7 years before it becomes too costly to maintain and can be sold for scrap at $15,000. The project is estimated to bring in additional $30,000 cash inflow and incur $10,000 in additional expenses related to the running the machine in the first year. The company expects there will be an annual sales growth of 5% from year 2 onward. Expenses are also expected to grow by 2% annually from the second year of the operation.  

The company plans to fund the purchase of the new machine using a bank loan with an interest rate of 13%.

1. How long is the payback period for this project?  years. Case sensitive. Type in 7.00 (two decimal places) for 7 years.
2. What is the NPV for this project? $.  Case sensitive. Type in 120,000.00 (two decimal places) for $120,000.00, or -120,000.00 for negative $120,000.00.
3. What is the IRR for this project?  %.  Case sensitive. Type in 20.00 (two decimal places) for 20%.

Make following changes. step(A)
step 1 Implementation a Generic Linked List using the program developed in the class.
step 2  Implement StackImpl class using the generic linked list.
step 3 Test the program with different type and number of matching and un-matching brackets.
This is how it works!
When you run the class MatchBrackets a popup dialog appears asking you to select a file. You are provided two input files in the project. input1.txt contains matching brackets and input2.txt does not match the brackets.
You can select any of these files to verify.

Then do steb(B)

step 1 Externalize the inner classes Node and ListIterator.
step 2 Make the appropriate changes to turn in the LinkedList class into a generic class.
step3 Use the one exception classes EmptyList where applicable.
step4 . Implement StackImpl class using the generic linked list.
step 5 Add test cases in the main method to demonstrate the working of your code.
. step 6 Run match bracket to check whether the brackets were matched or not.

The following data were obtained from a study using two separate toothpastes. You used them on the last homework in R. Now you will work with them to compute the ANOVA by hand. Subjects in group I received a fluoride-supplemented toothpaste for one year while those in group II used one without added fluoride. At the end of the trial period the number of cavities needing to be filled was used as the dependant variable. A) Compute an analysis of variance (ANOVA) with  = 0.05 determine whether the data indicate a significant difference between the two treatments. To do this you will need to compute the sum of squares (SS) between groups and the SS within groups on your way to computing the F-ratio. (Be sure to show your work.) B) Assemble your ANOVA calculations into the standard ANOVA table and type it below. C) Compute a t-test for independent groups with  = 0.05 determine whether the data indicate a significant difference between the two treatments. C) Check that your results confirm the general relationship between F-ratio (ANOVA) and the t-statistic. Comparing your F-ratio from part a to your t-statistic from part b you should find that F = t2. Why is this so?

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.4%. The probability distributions of the risky funds are:   

The correlation between the fund returns is .0684.

Suppose now that your portfolio must yield an expected return of 13% and be efficient, that is, on the best feasible CAL.

What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Stocks ________%

Bonds ________%

The admissions officer at a small college compares the scores on the Scholastic Aptitude Test (SAT) for the school's in-state and out-of-state applicants. A random sample of 8 in-state applicants results in a SAT scoring mean of 1048 with a standard deviation of 44. A random sample of 1616 out-of-state applicants results in a SAT scoring mean of 1147 with a standard deviation of 43. Using this data, find the 98% confidence interval for the true mean difference between the scoring mean for in-state applicants and out-of-state applicants. Assume that the population variances are not equal and that the two populations are normally distributed.

Step 2 of 3 : Find the margin of error to be used in constructing the confidence interval. Round your answer to six decimal places.