The first few answers are complete. Please answer the last couple.

Using the Black/Scholes Option Pricing Model, calculate the value of the call option given:

S= 85; X=95; T=6 months; Standard Dev.=0.6; Rf=10%

What is the intrinsic value of the call?_____$10________

If the exercise price would decrease, the value of the call would __increase_________?

If the time to maturity were 3-months instead of six months, the value of the call would _$7.20__________?

If the stock price where $65, the value of the call would __$4.02_________?

What is the maximum value and minimum value that a call can take? Why?

What increase in price does the stock have to achieve in order to break-even? ___________

What is the time value of the call option?____________

If you buy a bottom-straddle what strategy are you trying to use?

What is the price of each of the following bonds ($1,000 principal) if the current interest rate is 6 percent?

Firm A: coupon 6%, Maturity 6 years

Firm B: coupon 6%, Maturity 12 years

Firm C: coupon 13%, Maturity 6 years

Firm D: coupon 13%, Maturity 12 years

Firm E: coupon 0%, Maturity 6 years

Firm F: coupon 0%, Maturity 12 years

b) What is the duration of each bond?

c) Rank the bonds in terms of price fluctuations with the least volatile bond first and the most volatile bond last as judged by each bond’s duration

d) Confirm your volatility ranking by determining the percentage change in the price of each bond if interest rates rise up to 9%.

e) What generalizations can be made from the above exercise (2 Points)

What is the price of each of the following bonds ($1,000 principal) if the current interest rate is 6 percent?

Firm A: coupon 6%, Maturity 6 years

Firm B: coupon 6%, Maturity 12 years

Firm C: coupon 13%, Maturity 6 years

Firm D: coupon 13%, Maturity 12 years

Firm E: coupon 0%, Maturity 6 years

Firm F: coupon 0%, Maturity 12 years

b) What is the duration of each bond?

c) Rank the bonds in terms of price fluctuations with the least volatile bond first and the most volatile bond last as judged by each bond’s duration

d) Confirm your volatility ranking by determining the percentage change in the price of each bond if interest rates rise up to 9%.

e) What generalizations can be made from the above exercise (2 Points)

The table below describes the toy in the store

a)            Draw the supply and demand curves identified by the points on the table.

b)            What is the elasticity of demand for a reduction in price from $1.50 to $1?

c)            Draw the new supply line based on the following tax: $0.50 per unit for first 1.5M units and $1 per unit for all units 1.5M units and above.

d)            What is the new equilibrium price and quantity

e)            How much tax revenue was raised?

f)             Draw the dead weight loss triangle on the graph.

g)            Explain what dead weight loss is and why it happens when there is a tax.

h)            Estimate the area of dead weight loss.

Scenario

Media Wise sells a range of media products in package deals. The products sold within bundles are as follows.  

Package A consists of a TV and a stand and is sold for a discounted price of £420. Package B consists of a TV, a stand and two speakers and is sold for a discounted price of £480. Currently packages are sold in a ratio of 2 Package As for every 3 Package Bs and 600 packages are sold each month. Fixed costs are expected to be £82,000 for the month.  

Question 2

1. Calculate the break even point (in number of packages and sales revenue)
   1. If only Package As are sold                                                                
   2. If only Package Bs are sold                                                                
   3. If both packages are sold in the current sales mix, calculate the breakeven point per mix first, the unit for each product and the total units.   

.......Subject Java.....

main()

main() will ask the user for input and then call functions to do calculations. The calculations will be returned to main() where they will be printed out.

First function

Create a function named computeBill that receives on parameter. It receives the price of an item. It will then add 8.25% sales tax to this and return the total due back to main().

Second function

Create another function named computeBill that receives 2 parameters. It will receive the price of an item and the quantity ordered. It will calculated the total and then add 8.25% sales tax to that and return total due back to main().

Third function

Create a third function names computeBill that receives 3 parameters. It will receive the price of an item, the quantity ordered, and a coupon value. It will then calculate the total, then deduct the coupon amount, and add 8.25% sales tax. It will then return the total due to main().

Can you please use simple code  - Thank you

As part of Office Depot’s cost reducing strategy, research is being conducted on its line of printers. Currently Office Depot offers 5 types of printers, each having different features. Office Depot detected that when it comes to buying a printer, customers look first for a particular printing speed (pages per minute, or ppm) and only then they look to the price to make their decision. A regression analysis is performed to determine whether printer speed is a driver of (explains) the price. The following table displays the printers, their speeds and associated prices.

1. Calculate coefficient B1
2. Calculate coefficient Bo
3. The regression equation for this problem is......
4. Provide an interpretation for the intercept coefficient.
5. Provide an interpretation for the slope coefficient.

public class sales_receipt

{ public static void main(String[] args)

{ //declare varables final double tax_rate = 0.05;

//tax rate String cashier_name = "xxx"; //sales person

String article1, article2;

//item name for each purchased int quantity1, quantity2;

//number of quantities for each item double unit_cost1, unit_cost2;

//unit price for each item double price1, price2;

//calculates amounts of money for each item. double sub_total;

//total price of two items without tax double tax;

//amount of sales tax double total;

//total price of two items including tax double cash;

//Cash amount from user double change;

/cash amount to the user

//create Scanner object for keyboard input

//get first item

//get second item

//get amount of money tendered...

//Calculate amounts for sales receipt

//Create a DecimalFormat object

//display sales receipt System.out.println("H O M E D E C O R S T O R E S"); System.out.println("R I C H M O N D O U T L E T M A L L");

0System.out.println(" THANK YOU - HAVE A NICE DAY "); System.out.println(); } }

Create Scanner object and DecimalFormat object

using java

1. Import Scanner class and create scanner object to read user input. Write a program to read input from keyboard for the first item with following: 2. Input name of the first item purchased and save it to local variable “article1”. 3. Input quantity purchased and save it to a local variable “quantity1”. 4. Input unit price and save it to a local variable “unit_cost1”. Write a program to read input from keyboard for the second item with following: 5. Input name of the second item purchased and save it to a local variable “article2”. 6. Input quantity purchased and save it to a local variable “quantity2”. 7. Input unit price and save it to a local variable “unit_cost2”. 8. Input amount of cash received from a client and save it to a local variable “cash”. Calculate amounts for sales receipts 9. Calculate the amount of the first item by multiplying quantity and unit cost, and save it to a local variable “price1”. 10. Calculate the amount of the second item by multiplying quantity and unit cost, and save it to a local variable “price2”. 11. Calculate the sum amount of items purchased, and save it to a local variable “sub_total”. 12. Calculate the sales tax of items purchased, and save it to a local variable “tax”. 13. Calculate the total price of items including tax, and save it to a local variable “total”. 14. Calculate the change amount, and save it to local variable “change”. Import DecimalFormat class and create DecimalFormat object to format floating points. Print sales receipt based on the calculation 16. Now, you need to represents the sales receipt on the screen with following format. –use escape sequences for formatting sales receipt

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 100,000 units and sold 77,000 units. During its second year of operations, it produced 83,000 units and sold 101,000 units. In its third year, O’Brien produced 82,000 units and sold 77,000 units. The selling price of the company’s product is $75 per unit.

3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

4. The congress and the governor decide that they should reduce environmental pollution reducing the use of gasoline. They impose a tax of $ 0.10 on each liter of gasoline sold.

a. Should they impose the tax on producers or consumers? Explain

carefully using supply and demand diagrams. (4 points)

b. If the demand were more elastic, would the tax be more or less effective?

your purpose of reducing gasoline consumption? Explain using both text

and diagram. (4 points)

c. Are consumers helped or harmed by this tax? Why?

(4 points)

d. Are employees of the oil industry helped or harmed by this

tax? Why? (4 points)

5. A subsidy is the opposite of a tax with a tax of $ 0.50 to the buyers of cups of coffee, the government collects $ 0.50 for each cup of coffee purchased; with a subsidy $ 0.50 to coffee sellers, the government pays sellers $ 0.50 to sellers for every cup of coffee sold.

Show the effect of a subsidy of $ 0.50 per cup on the cup offer curve of coffee, the effective price paid by consumers, the price received by the vendors and the amounts of cups sold. (4 points)

b. Do consumers benefit or lose by this policy? The producers do they benefit or lose? Does the government benefit or lose? (3 points)

6. Consider how medical insurance affects the quality of medical services. Suppose the typical medical procedure costs $ 100, but the person with medical insurance, he pays only $ 20 out of pocket. Your insurance pays the remaining $ 80. (The Medical insurance company recovers $ 80 for premiums, but premiums paid by a person does not depend on the procedures that are done.)

Draw a market demand curve for medical procedures. (In its diagram, the horizontal axis must represent the number of procedures doctors.) Show the claimed amount of medical procedures if each procedure has a price of $ 100. (4 points)

In your diagram, show the quantity demanded of procedures if the Consumers only pay $ 20 per procedure. If the cost of each procedure is really $ 100, will this amount maximize the total benefit? Explain (3 points)

Economists often blame insurance for excessive use of care doctor. Given your analysis, could this use be excessive? (2 points) d. What policies could prevent this excessive use? (2 points)