Airbus sold an A400 aircraft to Delta Airlines, a U.S. company, and billed $30 million pay- able in six months. Airbus is concerned about the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/€ and the six-month forward exchange rate is $1.10/€. Airbus can buy a six-month put option on U.S. dollars with a strike price of €0.95/$ for a premium of €0.02 per U.S. dollar. Currently, six- month interest rate is 2.5 percent in the euro zone and 3.0 percent in the United States.

a. Should a firm hedge? Why or why not?

b. Compute the guaranteed euro proceeds from the American sale if Airbus decides to hedge using a forward contract.

c. If Airbus decides to hedge using money market instruments, what action does Airbus need to take? What would be the guaranteed euro proceeds from the American sale in this case?

d. If Airbus decides to hedge using put options on U.S. dollars, what would be the “expected” euro proceeds from the American sale? Assume that Airbus regards the current forward exchange rate as an unbiased predictor of the future spot exchange rate.

e. At what future spot exchange do you think Airbus will be indifferent between the option and money market hedge?

A Gallup Poll showed that 44% of Americans are satisfied with the way things are going in the United States. Suppose a sample of 25 Americans are selected. Based on this information, generate a cumulative binomial probability.

Find the probability that no less than 10 Americans are satisfied with the way things are going.

Find the probability that exactly 15 Americans are not satified with the way things are going.

Find the probability that the number of Americans who are satified with the way things are going differs by greater than 2 from the mean.

Find the probability that greater than 4 Americans are satified with the way things are going.

Find the probability that at least 17 Americans are not satified with the way things are going.

Find the probability that no more than 5 Americans are satified with the way things are going.

Find the probability that more than 25% but at most 50% of these Americans are satified with the way things are going.

Marketing Lemonade Worksheet Scenario Your team is looking for a way to make some revenue as either a for-profit or not-for-profit organization. This organization can market locally, nationally, or internationally, and can be a privately-owned company or a franchised organization. The product that you have decided to sell is lemonade. To make the endeavor work, you will have to define a marketable form of the drink and decide on a target market. Your marketing team's mission is to prove through research, strategy development, and reasoning why this form of this product is viable and will meet the company's goals. In the first half of this project, your team will complete this worksheet to report on the following: • Target market • Product’s definition to the target market • Viable pricing strategy • Brand's position in the competitive environment Complete the Following 1. Select a company name and determine the real business world industry of operation. Company Name Industry of Operation Phoenix Lemonade, Inc. A family owned corporation that distributes their lemonade varieties to various locations across the United States. You can find their brands anywhere from supermarkets to Gas Stations. Their mission is to provide unique flavors of lemonade that will stand out from their competitors.

Please respond to the Following question:

1. Discuss the maturity life cycle stages of your product in no more than 90 words for each stage.

Read the issue brief from the Robert Wood Johnson Foundation entitled “Education Matters for Health” 2009

There appears to be a dose-response relationship between educational attainment and health—the more you get, the better it is. Why this is true is not clearly understood, though several reasonable hypotheses have been proposed. Describe the 3 interrelated pathways presented as explanations for this relationship in this brief. Which do you feel is the strongest? Why? According to data presented in the brief, “the United States is the only industrialized nation where young people currently are less likely than members of their parents’ generation to be high-school graduates.” What evidence is given to support this statement? Why do you think this situation exists? What will it take to correct it? As would be expected, parents’ educational attainment is linked to their children’s health and even their educational attainment. These linkages, in turn, influence the health and educational attainment of their children’s children, as well, perpetuating an endless intergenerational cycle of high (or low) educational attainment and its associated better (or poorer) health. How does this fit with the biblical understanding of multigenerational influence (Exodus 34:6–7)? In what ways can the Church help interrupt the vicious cycle beginning with low educational attainment? Pray that God will use you to be a positive influence on your children in this area or on others whom God will bring across your path.

a.

In general, high school and college students are the most pathologically sleep-deprived segment of the population. Their alertness during the day is on par with that of untreated narcoleptics and those with untreated sleep apnea. Not surprisingly, teens are also 71 percent more likely to drive drowsy and/or fall asleep at the wheel compared to other age groups. (Males under the age of twenty-six are particularly at risk.)

The accompanying data set represents the number of hours 25 college students at a small college in the northeastern United States slept and is from a random sample. Enter this data into C1 of Minitab Express.

6 9 7 7 6 7 7 5 8 6 6 6 8 8 8 5 4 6 7 8 5 8 7 6 7

For the analyses that follow, we shall use

·         90%, 95%, and 99% as the confidence levels for the confidence interval.

·      5% as the level of significance ( ) for the hypothesis test.

·         7 hours sleep as the null hypothesis (according to The Sleep Foundation).

l.     Using a 5% level of significance, α = 0.05, make a statistical DECISION regarding the plausibility of the hypotheses; that is, would you reject or fail to reject the null hypothesis? Justify your answer.

a.    Describe what the p-value measures in the context of this study. This is also referred to as “interpreting the p-value.” S

1.To a FBO manager that is involved in the sale and trade of aircraft it would be necessary to understand that __________ aircraft sell more quickly than __________ aircraft.

7. An advantage of joint ventures is ______.

   1. A) the protection of know-how

   2. B) the access to partners’ assets

   3. C) the case of global coordination

   4. D) the complete equity and operational control

8. ____8. A disadvantage of acquisitions is ______.

   1. A) the inability to add new capacity to industry

   2. B) the inability to coordinate globally

   3. C) high development costs

   4. D) the slow entry speed

9. Antitrust policies aim to balance efficiency and fairness in trade. A) True

10. B) False

____10. The antitrust policies in the United States make it difficult for incumbents to raise entry barriers for new entrants.

A) True B) False

____11. Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of ______ strategic capabilities.

A) competitive
B) complementary C) rational
D) Collaborative

____12. Which is the best-case scenario for an equity-based alliance?

1. A) High tacitness and high importance to direct organizational monitoring and control.

2. B) Low potential as real options and low influence of formal institutions.

3. C) High tacitness and low influence of formal institutions.

4. D) Low tacitness and high importance to direct organizational monitoring and control.

13. During the first stage of alliance formation, a firm decides whether growth can be achieved strictly through market transactions, acquisitions, or alliances.

A) True B) False

14. Local responsiveness makes local customers and governments happy and helps decrease costs.

A) True B) False

1. What was the official reason President Wilson asked Congress for a declaration of war against Germany in April of 1917?
a. German unrestricted submarine warfare.
b. The Zimmerman note.
c. The German invasion of Belgium.
d. the sinking of the Lusitania.
e. None of these.

2. Prior to the declaration of war against Germany, most Americans:
a. wanted to go to war with Mexico.
b. None of these.
c. wanted to declare war both on Germany and Russia.
d. did not want get militarily involved in World War I.
e. pressured the Wilson administration to declare war on Germany.

3. Which of the following Americans was NOT in favor of war against Germany?
a. Theodore Roosevelt
b. George Creel
c. All of these men supported war against Germany
d. Eugene Debs
e. Woodrow Wilson

4. If the United States had not entered World War I, it is likely that:
a. England and France would have won the war.
b. Germany would have won the war.
c. The newly formed Soviet Union would have conquered Europe.
d. there would have been a peace agreement among the warring nations.

5. Who was the head of the Committee on Public Information (CPI)?
a. None of these.
b. Emma Goldman
c. Upton Sinclair.
d. Randolph Bourne
e. Mark Twain
f. Andrew Carnegie

Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the state of the aggregate economy in the United States as of February 1, 2020. Make sure that you explain your graph in your own words. You should draw your own AD/AS graph which you can then embed into your post. Your graph needs to be clearly labeled and explained in some detail. Make sure that your graph includes an aggregate demand (AD) curve, a short run aggregate supply (SRAS) curve, and a long run aggregate supply curve (LRAS, Potential GDP) curve. You should clearly label both axes of the graph

The Coronavirus pandemic has resulted in shocks to both Short Run Aggregate Supply(SRAS) and Aggregate Demand. Workers that can’t go to work can’t supply goods and services. On your graph clearly illustrate the effects of the shocks to the economy through shifts in both the aggregate demand (AD) and the short run aggregate supply curve (SRAS)

How would you expect the shifts to affect real GDP and the price level? Explain how and why the spread of the Coronavirus is likely to affect consumer and business investment spending and how it will affect aggregate demand? Which sectors of the economy and occupations will be most affected? Be specific.

POSITIVE VS. NORMATIVE ECONOMICS Instructions: Determine whether each of the following statements is representative of Positive or Normative Economics. Place a “P” on the lines next to all positive statements; place an “N” on the lines next to normative statements.

1. _____ The minimum wage should be raised to $15.00 an hour.

2. _____ If the minimum wage is increased, more people will become unemployed.

3. _____ There is too much crime in the U.S., something should be done about it.

4. _____ If more police are put on the streets, crime rates will fall.

5. _____ In a market, when supply exceeds demand, price tends to fall.

6. _____ When determining tax rates, the government should take into account the income needs of individuals.

7. _____ If the government reduces income taxes, consumption will most likely increase.

8. _____ Inflation is too high in the United States.

9. _____ U.S. trade restrictions cost consumers $19 billion annually in higher prices.

10. _____ NAFTA is likely to make the people of Mexico better off.

11. _____ Increasing the cost of university housing will lead to more people having roommates or seeking off-campus housing.

12. _____ Increasing the cost of university housing is unfair because it places a heavier burden on low income individuals.

13. _____ The government should provide health care to all of its citizens.

14. _____ Prices increased by 1% last year.

15. _____ No family ought to pay more than 25% of its income in taxes.