Consider a 2-year European put with a strike price of $52 on a stock whose current stock price is $50. Suppose that there are two time steps, and in each time step the stock price either moves up by 30% or moves down by 30%. Also suppose that risk-free rate is 7% per annum with continuous compounding. What is the value of the European put option?

You have 2 fair six-sided dice: one that is red and one that is blue. You conduct a random experiment by rolling the red die first and then rolling the blue die. Use this information and answer questions 2a to 2e.

2a) Determine whether following statements are outcome or event.
You roll a red 1 and blue 3.
You roll a red 2 and blue 5.
The sum of two dice is greater than 9.  

2b)  How many outcomes are there in the sample space? (Use integer)

2c)  What is the probability that you roll a red 3 and blue 4? (use 4 decimal places)

2d)  What is the probability that the sum of your roll is 7? (use 3 decimal places)

2e)  What is the probability that the sum of your roll is 8? (3 decimal places)

Briefly identify and explain the significance of any 5 of the following items. A
short paragraph (2-4 sentences) should be sufficient in nearly all cases. In the case of a
quotation, please identify the author and explain what theory or principle it illustrates or
exemplifies.

1. GE Moore.
2. The Prisoner’s Dilemma.

3. “Then it must follow that no one willingly chooses to do evil or what he thinks to
be evil.”
4. Ruth Benedict.
5. “Over himself, over his own mind and body, the individual is sovereign.”
6. Karl Menninger.
7. Retributivism.
8. Peter Singer.
9. “We thus conclude that virtue or excellence is a characteristic involving choice,
and it consists in observing a mean relative to us, a mean which is defined by a
rational principle . . . . It is the mean by reference to two vices, the one of excess,
the other of deficiency.”

1. A data message’s content is important as it related to computer communication protocols.

True

False

2. Command-and-execute sequences ensure efficient and accurate information flow.

True

False

3. An 802.11n device can broadcast or receive on up to ten frequencies in the 2.4 or 5 GHz bands.

True

False

4. Multiple electrical transmission lines cannot share a single return wire.

True

False

5. A parallel channel’s width, or number of lines, is typically one byte or one word plus a common return wire.

True

False

6. Why are waves important in communication?

7. Describe some options regarding light transmission in communication technology.

8. List two characteristics in which error detection and correction methods vary.

Three cards are randomly selected from a deck of 52 cards. After every draw, the card is NOT replaced back in the deck. Find the probability of drawing a King, followed by two Aces in a row.

An instructor gives a pop quiz consisting of 10 multiple choice questions, where each question has 5 choices, (a) through (e). What is the probability of passing the pop quiz if you guess the answers and you have to get 8 questions correct?

The probability of event A is 0.5 and probability of event B is 0.2. Given that A and B are independent, then the probability of A and B (A intersection B) is:

How many different ways can a 9-player baseball team be selected for an informal game if there are 25 available players? Which counting method do you use?

You are tossing a coin, then rolling a die, then drawing a card from a deck of cards. What is the probability that you will get: a tail AND an even number on the die AND a card less than 5 (assume the ace is equal to 1) from the deck?

In a club there are 11 women and 7 men. A committee of 5 women and 3 men is to be chosen. How many different ways are there to select the committee?

If a distribution follows the binomial distribution with n = 50 and probability of success of 0.25, calculate the mean and variance.

At a raffle, 1500 tickets are being sold for $2 each. There is one prize of $500, one prize of $250, one prize of $150, and one prize of $75. If you buy one ticket, what is the expected value of your gain?

Probability is:

Choose one • 10 points

The measure of how likely an event is to occur.

The ratio of total possible outcomes to desired outcomes.

Not conveyed as a decimal or a percent.

None of the above.

How many studs are needed to construct 100 feet of a 2 x 4 stud wall? The wall has one 8-footwide window, four 4-foot-wide windows, two 36-inch-wide doors, one 30-inch-wide door, four corners, two intersections, and eight hold downs located at corners. The stud spacing is 16 inches on center. Allow for two additional studs for each corner, intersection, or doorway; six additional studs for each window less than 6 feet in length; eight additional studs for each window 6 feet or more in width; and one additional stud for each hold down located at a corner

Water at 50 °F is being transported from one open reservoir to another open reservoir using a concrete pipe. The two reservoirs are 1.5 miles apart with a difference in surface elevations of 25 ft. Determine the minimum pipe diameter needed to carry 10 ft3 /s of water.

oyota USA is studying the effect of regular versus high-octane gasoline on the fuel economy of its new high-performance, 3.5-liter, V6 engine. Ten executives are selected and asked to maintain records on the number of miles traveled per gallon of gas. The results are:

a. STATE THE NULL HYPOTHESIS AND ALTERNATE HYPOTHESIS

Tax Incidence: How do the effects of a tax differ between markets with different elasticities of supply? Consider two hypothetical markets. In both cases, the demand function is QD = 1000 - P The two supply functions are QS1 = P - 100 and QS2 = 2P - 650

a. Solve for equilibrium price and quantity for both cases and show that the equilibrium values are the same in these two cases (for QS1 and QD and for QS2 and QD). Plot the inverse supply and demand functions (with P on the vertical axis and Q on the horizontal axis) for the two markets on the same graph. (7)

b. Now suppose a tax is imposed in both markets, equal to $100 per unit purchased. Model this as a shift in the demand curve (so that QD now depends on P, the net price paid to the firm, plus the tax). Illustrate the new demand curve on your graph (label everything clearly). Derive the new equilibrium price (the net price received by the firm) and quantity for each of the two cases. In which case is the producer’s share of the tax burden greater? (7)

c. Calculate deadweight loss in each case. In which case is deadweight loss greater? (8)

Assignment Description

This assignment focuses on programming basics; expressions, variables, constants, methods, selection and loops.

Danny runs an ice cream shop in the inner suburbs of Melbourne. Due to the growing number of customers, Danny has decided to take on extra casual employees. In order to manage payroll for his employees, Danny has decided to develop an employee payroll management system. Details of each employee to be maintained in the system will include; employee id, name, gender (M or F), phone number, hours worked, pay per hour, gross pay, net pay, and income tax payable.

The gross pay is calculated as the number of hours worked multiplied by pay per hour, while the net pay is calculated as the difference between gross pay and income tax payable of which income tax payable is calculated by multiplying gross pay by an income tax rate of 30%. Any hours over forty (40) is paid as an overtime hour at the rate of (2.5) times the base hourly rate.

For example, an employee who has worked a total of 45 hours with an hourly rate of $20 will have;

Regular pay=40*$20=$800

Overtime pay=5 * $20 * 2.5 = $250

Gross pay=$800 + $250 = $1,050

Income tax payable=$1050 * 30%=$315

Net pay=$1050-$315=$735

Task Requirements

Imagine you have been hired to develop this system. Familiarise yourself with the problem description and write a python program named payroll.py with the following functions:

1. Create a main () as a driver function in your payroll progam. Within the main (), you will declare all the required variables, and invoke the other methods described in the next step as required for calculations and displaying the program output.

2. Create additional functions in your payroll program for calculations as follows:
   1. Function to calculate the overtime hours
   2. Function to calculate the gross pay
   3. Function to calculate the income tax payable and
   4. Function to calculate the net pay

These functions needs to be invoked in correct order within your driver function main (), so that when your program executes, it should be able to produce an output as an employee’s pay slip like the example below.

Submission requirements:

1. Your assignment should include the following in the .ZIP archive:

• A Word report with sections containing:
  1. An overview of the problem description of the assignment
  2. Pseudocode as an algorithm for the program
  3. Screen shot/capture of the program output
  4. Statement of completion
  5. Acknowledgment of any help taken for assignment completion    
• Python file (payroll.py) that can be executed by your tutor

2. Instructions for archiving and submitting your files:

• Create a folder and name it with your student ID (MITnnnnnn, where nnnnnn are digits of your student number)
  • Copy your Word document and the python (payroll.py) files into that folder.
  • Zip the folder.
    1. Right-click on the folder
    2. In the pop-up menu select Send-to, Compressed (zipped)Folder
• Then submit this zipped folder in Moodle submission link

Marking criteria:

Program Demonstration: Students must demonstrate their program in week8 (lab time) to the tutor, and are expected to explain their implementation. Marks will be deducted (50% -maximum) for failing to do demonstration or poor explanation.