F) In early 2008, the popular prediction is that the market will experience a downturn, hence most hedging strategies focus on loss minimizations. Imagine a scenario where prices are extremely volatile, but no one can predict the direction, and you have long and short position's in stocks. Design two different strategies involving taking long positions in options to minimize losses and capture potential gains. Justify which one is the best.

In early 20X1, Textron Inc. entered into an agreement with Scantech Ltd. for the construction of a new office building. Construction is expected to take three years to complete. The initial total estimated cost of the building was $28 million, and the price of the contract was set at $38 million. At December 31, 20X1, the total cumulative cost incurred was $18 million. Due to increasing costs of materials, the total estimated cost of the project at the end of 20X1 was $31 million. By the end of the 20X2 fiscal year, an additional $9 million of costs was incurred. At December 31, 20X2, the total estimated cost of the project remained the same as at December 31, 20X1.

What amount should Textron recognize as gross profit (the profit element) for the December 31, 20X2, fiscal year?

2. In County X, in the early nineties, as unsustained reduction of the public debt to GDP ratio coincided with a sharp increase in the unemployment rate from 4 percent to 12 percent, followed by a steady decline of unemployment towards its natural rate. Apply the Keynesian model for the short-run and the classical model for the long-run to provide a unified explanation for the above observation.

In the early 1700's Edward Jenner demonstrated and was credited with the concept of vaccination. the theory/mechanism surrounding how the immunity to smallpox was achieved is referred to as "cross reactivity. Explain why we don't see much of this anymore or why it might not be exploited more.

Juskstock supplies was founded by Bob Juskstock in the early days of the oil boom in Newfoundland to supply clothing to offshore drilling rigs and supply boats. He quickly grew the business to selling safety clothing and safety equipment and hired his cousin to manage sales and the final delivery step to customers. Bob is a hands on owner / manager and is involved in all the daily operational decisions. Bob oversees the identification of new products, inventory management and filling of customer orders. There are 10 people in the warehouse who receive, ship, deliver and take direct orders from customers. There is a general office manager who manages the office, does payroll and handles all the financial transactions and accounting with the assistance of 3 clerks. Bob and his cousin meet each morning to decide what gets shipped out that day and assign the shipping & delivery tasks to four of the warehouse staff. All the warehouse staff receive, ship and deliver. Bob rotates the responsibilities amongst the warehouse staff so that their jobs are more interesting, and he can allocate staff as needed each day. Products are generally stored in a specific area based on product type. However, whoever is shipping sometimes has to spend time trying to locate the product. When there is a new product, the shipper often has to find out who received it and where the receiver decided to put it. As the range of products and number of shipments has increased, warehouse staff are starting to become frustrated with the amount of time they spend looking for things. Delivery is starting later in the day than it used to. Sometimes they are not able to complete their deliveries for that day because they run out of time. The staff asked Bob if he could hire a junior person to help find stuff in the warehouse so that they can load the truck faster. Bob and his cousin are so busy keeping up with the current workload that neither is spending any time acquiring new clients. Bob and his cousin are nearing retirement age and Bob would like to sell his company. He has been told by a business advisor that although there is strong potential for growth, his company operations are very dependent on him and his cousin and this is a risk for someone buying his company. His company would fetch a much better price if it were re-structured to remove those strong dependencies and positioned to successfully seek and handle growth. How should Bob restructure his company to • Decrease the daily operations dependency on himself and his cousin • Increase the sales capability • Improve the efficiency of the warehouse • Maintain the loyalty of the staff

Computational methods can be applied at the early stages of the drug design process. It is use current technology to provide valuable insights into the understanding of chemical system in a virtual manner. By integrating the TWO (2) computational methods; molecular docking and molecular dynamics simulation, explain how these TWO (2) methods can be integrated in computational drug design.

Long answer in essay form for 25 Marks

This week we will be discussing issues of race and ethnicity in the early modern period. To what extent is the nature of race and identity created by religion? Or is it created by trade and economics? Is it created by a shared language? Is it created by skin color? Is it created by wealth or inequality? Your question is this: How does a community begin to identify itself, and how does it see others? Feel free to share your thoughts on current events, personal history, or generalized ideas, as you feel appropriate. This is a graded discussion. You will need to make one original post, and make comments on two of your classmates' posts. Your comments must be substantive and engage your classmates in further discussion (not simply, I agree, or great post). Ask deeper questions of your classmates. Get to know them. Challenge them to think in different ways. But as always, be respectful, know when to back off, and know when to agree to disagree. You will also need to respond to each of the comments in thoughtful ways. I will remove any postings that are offensive in any way.  

#16: A bond that can be paid off early by the issuing company is referred to as being which one of the following?

1. Zero coupon
2. Callable
3. Collateralized
4. Senior

#17: The part of total risk that is irrelevant to a well-diversified investor is called:

1. Diversifiable risk
2. Market risk
3. Systematic risk
4. Beta risk

#18: Which one of the following is the y-intercept of the security market line?

1. Beta coefficient
2. Risk-free interest rate
3. Market risk premium
4. Market standard deviation

#19: FIN stock has a beta of 1.5. The risk-free rate of return is 2.5% and the market risk premium is 7.3%. What is the expected rate of return on this stock?

1. 12.53%
2. 9.70%
3. 13.45%
4. 8.58%

#20: FIN’s bonds have a 7.60% coupon and pay interest annually. The bonds mature in 20 years. The face value is $1,000. If the current market price is $1,062.50 per bond, what is the bond’s yield to maturity?

1. 7.01%
2. 7.71%
3. 6.94%
4. 7.46%

#21:

What is the risk as measured in standard deviation of returns on a stock given the following information:

1. 11.65%
2. 12.62%
3. 12.78%
4. 11.77%

#22:

You have a chance to buy an annuity that pays $500 at the end of each year for 3 years. You could earn 4% on your money in other investments with equal risk. What is the most you should pay for the annuity?

1. $1243.75
2. $1387.55
3. $1212.84
4. $1415.48

#23:

What should be the share price of FIN inc. stock if the company just paid a $0.80 annual dividend, the dividends increase by 1.6% annually, and you require 8% rate of return.

1. $12.70
2. $19.52
3. $13.84
4. $16.68

#24:

You now have $500. How much would you have after 5 years if you leave it invested at 3.5% with annual compounding?

1. $593.84
2. 581.09
3. 689.42
4. 654.95

#25:

FIN inc. just paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 4% per year. The stock is currently selling for $26.91 a share. What is the market rate of return?

1. 15.20%
2. 14.60%
3. 13.88%
4. 14.82%

PLEASE help with calculations and formulas where/if possible. Thank you very much.

As per a published report…” In the late 1990s and early 2000s, Nokia was the global leader in mobile phones. With the arrival of the Internet, other mobile companies started understanding how data, not voice, was the future of communication. Nokia didn’t grasp the concept of software and kept focusing on hardware because the management feared to alienate current users if they changed too much.” List and briefly explain 2 factors that might have been overlooked by the business(es), referred to in the case.

Question 3: An early criticism of reinforcement theory is that it can only account for the repetition of highly stereotyped behaviors produced in response to specifically trained stimuli (i.e. cannot account for behavior variability, or for the ability of novel stimuli to elicit learned behavior). Describe at least two experiments that refute this criticism.