Assume that the common stock of Luther Industries is currently traded for 47 per share. The stock pays no dividends. A 3-month European call option on Luther with a strike price of £45 is currently traded for £7.45. The risk-free rate interest rate is 2% per year. Assume that you own common stock of Luther Industries, but you are concerned about a decline in its stock price in the near future.

a) Should you simply sell your holding? Why or why not?

b) Evaluate hedging the downside risk with options. What type of option should you use? Be specific, and show this strategy at maturity in a position diagram.

c) Suppose that put options on Luther Industries are not traded, but you want to have one. How could you achieve it? (Hint: design a strategy that uses a combination of financial securities)

d) Suppose that put options on Luther Industries stocks are traded. What noarbitrage price should a 3-month European put option on Luther Industries with an exercise price of £45 sell for?

e) What is the minimum profit of your portfolio after you purchase this put option?

Chad, a 22-year-old man with mild intellectual disability, has good verbal abilities and can eas- ily carry on a conversation and understand com- plex directions. Chad works in a factory. He does his job well, but he has been caught steal- ing from the other workers’ lockers. The prob- lem occurs at break or other times when he is near the lockers and no one else is around. At these times, he opens people’s lockers and takes cans of soda from them, or he takes change that he uses to buy a can of soda from the vending machine. He is going to lose his job if he does not stop stealing. When caught stealing, he says he is sorry and promises not to do it again, but the problem continues. Describe how you would conduct self-instructional training with Chad to help him stop stealing from other workers.

Describe other behavior modification procedures you would use in conjunction with self- instructions to help Chad stop stealing money and soda from other workers’ lockers.

Need to write a program and part 1 of the program is to write an HTML code, here are the parameters, but I am new to HTML and I am confused as to how to write this.

1) HTML file shall:

        - have your name(s) somewhere near the top, as a comment.
        - be a complete html document with appropriate html tags.
        - have 1 form with 2 parts, described as follows:

        part 1:
            - present (4) input fields named:
                          myin, myout, inamount, submit1
            - myin and myout are free form text fields.
              inamount is a real number.
              submit1 is of type "submit", with a value of "Make it so".
            - the 4 fields will be in an html table
              that is 1 row by 4 columns
            - you should use a table header for each column.

        part 2:
            - present (3) input fields named:
                          maybein, maybeout, submit2
            - maybein and maybeout are free form text fields.
              submit2 is of type "submit", with a value of "Is path?".
            - the 3 fields will be in an html table
              that is 1 row by 3 columns
            - you should use a table header for each column.

        IMPORTANT: this form will have an "action" value of the CGI
                    file "universal.cgi". It shall use the
                    "method" of "GET".

The consolidated financial statements of FMCG Ltd and RG Ltd were presented to the Board. The Board is alarmed that the economic entity’s balance sheet (consolidated balance sheet) shows a deferred tax balance, when the accounts for FMCG Ltd had no deferred tax asset or deferred tax liability.

FMCG management is also planning to acquire another entity ABC Investments Ltd in the near future. Management pointed out to the Board that on acquisition, the financial results of this new subsidiary (ABC Investments Ltd) will also be consolidated in the economic entity financial statements.

One of the Board members noted that the new business to be acquired by FMCG Ltd is an investment company. Its financial statements should not be consolidated because it is involved in investments industry, whereas all of the other companies in the economic entity are involved in retail industry.

Required:

As the financial accountant you are requested to prepare a response to the following questions:

(a) Why does the economic entity have a deferred tax balance? (2.5 marks)

(b) Should the financial statements of proposed acquired business, ABC Investments Ltd, be consolidated into the economic entity and why? (2.5 marks)

1) If a price that a perfectly competitive firm is able to get is above its average variable cost but below its average total cost then

a. The firm will suffer economic losses and should shut down immediately

b. The firm will be able to earn economic profit as soon as it can increase the size of its factory

c. The firm will suffer economic losses but should continue to operate

d. None of the above

2) In the short run, if price falls, the firm will respond by

a. Shutting down regardless of how high its variable costs are

b. Equating average variable cost to marginal revenue

c. Reducing output along its marginal cost curve as long as marginal cost curve as long as marginal revenue exceeds average variable cost

d. None of the above

3) Suppose a competitive firm is in equilibrium then the price of one of its inputs falls. What will happen?

a. The firm will hire more of the lower priced input

b. The firm will produce more output

c.The firm cost curves will downward

d. All of the above

4. A competitive industry will be in a long run equilibrium when

a. Each firm in the industry is earning zero economic profit

b. No entry or exit occurs

c.The total quantity produced at the prevailing price equals the total quantity consumers want to purchase

d. All of the above

5. In an increasing cost competitive industry, if prices rises above its long run equilibrium level which of the following will occur as the industry adjusts to a new long equilibrium ?

a. Firms will exit the industry

b. Economic profits will exits

c. Input prices will rise only when firms leave the industry

d. Price will return to its original level

6.The marginal revenue curve of a monopolist lies below the demand curve ( in the absence of price discrimination) becaus

a. The demand curve is unit elastic

b. The monopolist must lower price on all units sold in order to sell additional units

c. The monopolist is a price taker

d. The marginal revenue curve coincides with the average revenue curve

7. The demand curve for a monopolist's slopes downward because

a. Profit per unit declines

b. Demand elasticity is greater than one in the portion of the demand curve where the monopolist operates

c.It price discriminates

d. It faces the market demand curve

8. If a monopolist's is operating in the elastic portion of its demand curve then

a. An increase in price will increase total revenue

b. An increase in price will decrease total revenue

c. Marginal revenue is negative

d. An increase in price will leave total revenue unchanged

9. Marginal revenue is negative when

a. The demand curve is downward sloping

b. Demand curve is elastic

c. Demand curve is inelastic

d. Demand is unit elastic

10. The lerner index

a. Measures the monopoly power as the markup of price over average cost

b. Measures the monopoly power as the markup of price over marginal cost

c. Measures the market share of a firm

d. Measures the market capitalization of a firm

11. Compared to a competitive industry, ceteris paribus a standard monopoly firm

a. Sells more units and charges a higher price

b. Sells the same amount of units but at a higher price

c. Does not try to maximize profits as do firms in competitive industry

d. Restricts output and charges a higher price

12. A monopoly will produce the efficient rate of output if it

a. Engages in perfect price discrimination

b. Engages in no price discrimination

c. Engages in third degree price discrimination

d. Is regulates and average cost pricing is enforced

13. Which of the following types of mergers directly reduces the number of competitors in an industry?

a. Congolomerate

b. Horizontal

c. Vertical

d. Bivariate

14. Why do gas stations near airport often charge more for gasoline ?

a. They have higher costs

b. They are inconvenient

c. They face a smaller elasticity of demand

d. They must pay the airport agency for space

15. The deadweight loss due to monopoly restriction of output occurs over units of output

a. For which the willingness to pay would be greater than MC but don't get produces

b. For which the willingness to pay is greater than MC and do not get produced

c. Up until the profit maximizing level of output

d. For which the willingness to pay is less than MC but don't get produced

16. First degree discrimination

a. Is perfect because consumers benefit the most

b. Is called first degree because it does not apply to resale of products

c. Is also known as perfect price discrimination

d. Is the easiest form of price discrimination

I would like to get the step by step solution for the below question

Question 11 pts

What is the difference between positive economics and normative economics?

Group of answer choices

Positive economics deals with dynamic systems, while normative economics focuses on static systems.

Normative economics deals with how the world actually works, whereas positive economics focuses on what people ought to do.

Positive economics requires making value judgments, while normative economics relies solely on factual statements.

Normative economics applies in cases that are characterized by typical or normal behaviors and dynamics, while positive economics applies in cases with unusually rapid technological progress.

Normative economics focuses on what people ought to do, whereas positive economics deals with how the world actually works.

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Question 21 pts

Which of the following are true statements about public goods?

Group of answer choices

To find the aggregate marginal willingness to pay (MWTP) for the good you would add together the individual MWTP corresponding to given ``output'' levels

The good is available in the same quantities to everyone

Payment of a fee to a public agency provides access to the good

The total amount consumed is the sum of the amounts consumed by each individual

Public goods are those paid for by taxes and provided and maintained by the government

Overuse by some diminishes the amount available to others

They are rival and non-excludable

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Question 31 pts

Angela is willing to pay $75 now for an item to be delivered in exactly 3 years time. The most she would be willing to pay for the item today is $100. What is Angela's discount rate?

Group of answer choices

7.5% per year

25% per year

15% per year

10% per year

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Question 41 pts

Aubrey consumes 5 units of a certain good. Aubrey would buy one additional unit only if the price per unit were $10 or less. What concept is being illustrated here?

Group of answer choices

Diminishing marginal utility

Marginal willingness to pay

Discounting

Aggregate willingness to pay

Intrinsic value

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Question 51 pts

A local firm makes and sells handcrafted equestrian riding boots. Some of the residual chemicals from the leather tanning process are discharged into a river used for the town's drinking water supply. The social marginal cost curve for the riding boots is ___________________ the firm's riding boot supply curve.

Group of answer choices

lower than

higher than

completely unrelated to

equal to

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Question 61 pts

Last week you paid $20 for a ticket to the opening game of the Cowboy's upcoming football season. Tickets are now sold out, and your acquaintance, Mary, asks to buy your ticket. The lowest price at which you would be willing to sell your ticket to Mary is $50, but she is willing to pay no more than $40. If attending the game and selling your ticket to Mary are your only two options, what is your opportunity cost of going to the game?

Group of answer choices

$50

$20

$40

$30

$0

$10

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Question 71 pts

Which one or more of the following statements is consistent with the economic definition of sustainability for a nonrenewable natural resource?

Group of answer choices

Non-renewable resources cannot be used sustainably because they eventually will run out; only renewable resources can be used sustainably.

Sustainability requires that the rate of extraction must be less than the discount rate in all periods.

Use of a non-renewable resource can be sustainable if investments in other forms of productive capital are made in an amount equal to or exceeding the user cost.

Extraction can be sustainable only if it is matched or exceeded by the rate of discoveries of new deposits.

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Question 81 pts

Which of the following are typically associated with open-access resources?

Group of answer choices

rivalry

over-use relative to the economically efficient level

resource discounting inflation

Under-supply relative to the economically efficient level due to free-riding

Public goods

Private goods

excludability

resource rent dissipation

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Question 91 pts

If the government charges a tax to producers in the amount of $x per unit of output, this has the effect of...

Group of answer choices

Decreasing the market quantity

Shifting the marginal external cost curve down

Shifting the supply curve up

Shifting the marginal external cost curve up

Increasing the market quantity

Decreasing the market price

Shifting the demand curve up

Shifting the supply curve down

Increasing the market price

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Question 101 pts

The table below shows the consumer surplus per visitor that would be generated at different levels of attendance at a local public park that currently charges no fee for entry. Consumer surplus per visitor declines with the number of visitors because of crowding and congestion in the park.

Number of visitors	Consumer surplus per visitor
200	50
300	40
400	20
500	0
600	-10
700	-15
800	-20

What entry fee would need to be charged to limit the number of visitors to the level that maximizes total surplus?

Group of answer choices

$60

$40

$20

$50

$0

$30

$10

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Question 111 pts

A project has been proposed to build an overlook area off the Snowy Range Scenic Byway. To finance the construction of the overlook, a two-tier tax will be assessed on residents of Laramie and several nearby towns. Households below the median income will pay 0.1% of their income in taxes, and those above the median income will pay 0.2%. Differences in households' willingness-to-pay for the overlook have been found to be unrelated to their incomes.

Based on the information provided, which one or more of the following conclusions can we draw about the distribution of the benefits, costs, and net benefits of the proposal relative to household incomes?

Group of answer choices

Net benefits are distributed regressively

Costs are distributed regressively

Benefits are distributed progressively

Net benefits are distributed progressively

Costs are distributed proportionally

Net benefits are distributed proportionally

Benefits are distributed regressively

Benefits are distributed proportionally

Costs are distributed progressively

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Question 121 pts

Which of the following are reasons why voluntary contributions to The Nature Conservancy probably would not correspond to the total value that people place on the wildlife habitat protected by that organization?

Group of answer choices

Travel costs may be prohibitive for some contributors.

Protection of species habitat is a public good.

The protected habitat also may provide consumptive or non-consumptive use values.

The marginal private cost of protecting the habitat will be greater than the marginal social benefits.

Existence values cannot be measured using a contingent valuation approach.

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Question 131 pts

Use the table below to answer the questions that follow.

Time period	Project A benefit	Project A cost	Project B benefit	Project B cost
0	10	25	40	120
1	25	25	40	0
2	40	25	40	0
3	50	25	40	0

Recall that a project's internal rate of return (IRR) is the discount rate for which the project's present value of net benefits equals zero.

(a) The internal rate of return for Project A is                            [ Select ]                       ["equal to", "greater than", "less than"]         0.3 per period.

(b) The internal rate of return for Project B is                            [ Select ]                       ["equal to", "greater than", "less than"]         0.3 per period.

(c) If the discount rate is 0.1 per period and only one project an be adopted, an economist would recommend                            [ Select ]                       ["Project B", "Project A"]         .

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Question 141 pts

I am working on an accounting assignment and am having problems. Firstly,

1.I need to journalize these entries and post the closing entries

2. i need to prepare Dalhanis multi-step income statement and statement of owners equity for August 2010

3. i need to prepare the blance sheet at august 31,2010

4. i need to prepare a post-closing trial balance at august 31,2010

DALHANI makes all credit sales on terms 2/10 n/30 and uses the Perpetual Inventory System

Aug 1 Issued check no 682 for august office rent 2,000
Aug 2 Issued chek no 683 to pay salaries of 3,240, which includes salary payable of 930 from july 31. The company does not use reversing entries.
Aug 2* Issued invoice no 503 for sale on account to R.T. Loeb $600 Dalhani's cost of this merchandise was $190.
Aug 3 Purchased inventory on credit terms of 1/15 n/60 from grant ltd $1,400
Aug 4 recieved net amount of cash on account from fullam corp, $4,116 within the discount period.
Aug 4 sold inventory for cash $2,330 (cost $1,104)
Aug 5 received from park-hee inc. merchandise that had been sold earlier for $550 (cost $174). the wrong merchandise had been sent
Aug 5 issued check no 684 to purchase supplies for cash $780
Aug 6 collected interest revenue of $1,100
Aug 7 issued invoice no 504 for sale on account to k.d. skipper inc $2,400 (cost $760)
Aug 8 issued check no 685 to pay fayda corp $2,600 of the amount owed at july 31st. This payment occurred after the end of the discount period
Aug 11 issued check no 686 to pay grant led the net amount owed from august 3.
Aug 12* received cash from r.t. loeb in full settlement of her account from aug 2nd. r.t. loeb notified dalhani that only one quarter of the goods ordered had been received, but agreed to pay now if dalhani held the remaining goods in his warehouse until september.

* dalhani distributors sold inventory on account to r.t. loeb on august 2 and collected in full on august 12th. loeb indicated that the shipment was incomplete and arranged with dalhani that he would ship the goods to loeb in september. at august 31, $450 of unearned sales revenue needs to be recorded and the cost of this merchandise (142) needs to be removed from cost of goods sold and returned to inventory.

Aug 16 issued check no 687 to pay salary expense of $1,240
Aug 19 purchased inventory for cash $850, issuing check no 688
Aug 22 purchased furniture on credit terms of 3/15 n/60 from beaver corporation, $510
Aug 23 sold inventory on account to fullam corp, issuing invoice no 505 for 9,966 (cost 3,152)
Aug 24 received half the july 31st amount receivable from k.d. skipper inc. after the discount period
Aug 25 issued check no 689 to pay utilities $2,432
Aug 26 purchased supplies on credit terms of 2/10 n/30 from fayda corp $180
Aug 30 returned damaged inventory to company from whom dalhani made the cash purchase on august 19th, receiving cash of $850
Aug 30 granted a sales allowance of $176 to k.d. skipper inc.
Aug 31 purchased inventory on credit terms of 1/10 n/30 from suncrest supply ltd $10,330
Aug 31 issued check no 690 to jack west, owner of dalhani for $1,700

I have balances in my general ledger already of:
cash $4,490
accounts receivable $24,560
interest receivable $0
inventory $41,800
supplies $1,340
prepaid insurance $2,200
note receivable, long term $11,000
furniture $37,270
accumulated amortization-furniture $10,550
accounts payable $10,600
salary payable $930
interest payable $4,320
unearned sales revenue $0
note payable long term $42,000
jack west, capital $54,260
jack west withdrawls $$0
the rest start with $0 balances
income summary
sales revenue
sales discounts
sales returns and allowances
interest revenue
cost of goods sold
salary expense
rent expense
amortization expense-furniture
insurance expense
utilities expense
supplies expense
interest expense

I have adjusting entries
a)accrued interest revenue $1,000
b) supplies on hand $990
c)prepaid insurance expired $550
d) amortization expense $230
e) accrued salary expense $1,030
f) accrued interest expense $1,320
g) unearned sales revenue $450 (refers to august 2 transaction)
h) inventory on hand $47,700

i seem to be getting the workings wrong can you please show me the working on excel so that i can see wherei am going wrong

thanking you

Policy 2
Landowners will have to pay a tax for plots of building land for which building permission has been granted but no work has been carried out and the plot remains empty. This is to avoid “land banking” – keeping land undeveloped until it acquires more value due to manufactured shortage.

Policy 3
The UK government ‘Help to Buy: Equity Loan’ is a scheme that allows buyers of newly built homes to reduce the deposit needed to 5% while keeping mortgage to 75% thanks to a loan by the Government of the remaining 20% of the cost. If buyers stay in their home for at least five years they won’t have to pay any loan fee on the government scheme. The government has also increased the limit of equity loan for London properties to 40% to reflect current property prices.

Policy 4
The government has introduced a three-per-cent stamp duty surcharge that property owners are liable to. Some observers have said that this would push amateur buy-to-let landlords out of the market, as they are less well resourced to cope with the tax change compared to corporate developers. Most of the landlords who might be pushed out of the letting market by this measure are wealthy parents investing for their children’s future or those who have inherited properties.

Policy 5
The government has set up a programme of guarantees to support lending to smaller housebuilders by taking on some of the borrowing risk usually borne by developers in their projects

Law of one price and Purchasing-power-parity theory

We employ a theory called the Purchasing Power Parity to explain the movement of nominal exchange rate. The PPP theory is built on the Law of One Price, which states that a currency must have the same purchasing power in all countries. Based one this assumption, PPP theory establishes the functional relationship between Nominal exchange rate, domestic price level, and foreign price level. Suppose you are provided with the following information: 1) P is the price of a basket of goods in US (measured in dollars); 2) P* is the price of a basket of goods in Mexico (measured in Peso); 3) e is the nominal exchange rate between USD and Peso; 4) you have $1 in hands.

1) Suppose there are two markets selling the same good located in Seattle and Dallas, respectively. Initially, the price is $5 in Seattle, and $4 in Dallas. Assuming perfect information and sufficient low cost of transporting. How does the price of good in these two markets adjust in the long run? (6pts) and why? (4pts) Show your analysis using graph or words in details.

An international version of law of one price states that one USD should have the same purchasing power in the U.S. and in any other countries. Based on the principle of law of one price,

2) What is the purchasing power of $1 in U.S and Mexico, respectively? (5pts) Express nominal exchange rate e as a function of P and P* , show your work with details (5pts)

3) Suppose that money supply growth continues to be higher in U.S than it is in Mexico. What does purchasing-power parity imply will happen to the real and to the nominal exchange rate between Peso and U.D. dollar? (10pts)

Minimum-Wage Law and Unemployment

Using labor supply and demand graph, explain

1) how are the equilibrium quantity of labor and the equilibrium wage rate determined? (6pts)

2) why might minimum-wage law lead to unemployment? (In other words, under what conditions does the minimum wage law lead to unemployment?) (9pts)

Dollars and Cents versus a Sense of Ethics   

Grizzly Community Hospital in central Wyoming provides health care services to families living within a 200-mile radius. The hospital is extremely well equipped for a relatively small, community facility. However, it does not have renal dialysis equipment for kidney patients. Those patients requiring dialysis must travel as far as 300 miles to receive care.

Several of the staff physicians have proposed that the hospital invest in a renal dialysis center. The minimum cost required for this expansion is $4.5 million. The physicians estimate that the center will generate revenue of $1.15 million per year for approximately 20 years. Incremental costs, including the salaries of professional staff and depreciation, will average $850,000 annually. Grizzly is exempt from paying any income taxes. The only difference between annual net income and net cash flows is caused by depreciation expense. The center is not expected to have any salvage value at the end of 20 years.

The administrators of the hospital strongly oppose the proposal for several reasons: (1) They do not believe that it would generate the hospital’s minimum required return of 12 percent on capital investments; (2) they do not believe that kidney patients would use the facility even if they could avoid traveling several hundred miles to receive treatment elsewhere; (3) they do not feel that the hospital has enough depth in its professional staff to operate a dialysis center; and (4) they are certain that $4.5 million could be put to better use, such as expanding the hospital’s emergency services to include air transport by helicopter.

The issue has resulted in several heated debates between the physicians and the hospital administrators. One physician has even threatened to move out of the area if the dialysis center is not built. Another physician was quoted as saying, “All the administrators are concerned about is the almighty dollar. We are a hospital, not a profit-hungry corporation. It is our ethical responsibility to serve the healthcare needs of central Wyoming’s citizens.”

Instructions

a. Financial factors and measures. (Compute Payback Period, ROI and NPV - Show all calculations for the supporting calculations. ​)