Quantity demanded as a function of price is given by Q(P)=100-0.5 x P. If the market price is P=€150 what is consumer surplus
In: Economics
You want project your investment so you bought a stock at 100 and the strike price is 100 dollar you paid 3 dollars as premium Show the max loss, max profit protective put , break even
If price now 95 what is your profit
And plot it on a diagram
In: Finance
You purchased 100 shares in an oil company, Vic Energy Ltd at the price of $50/share.
The company has 1 million shares outstanding. Ten days later Vic Energy announced an investment in an oil field in east Victoria.
The probability that the investment will be successful and generate an NPV of $10 million is 0.2;
The probability that the investment will be a failure and generate a negative NPV of negative $1 million is 0.8.
How would you expect the share price?
In: Finance
You sell 100 shares of PGD short at a price of $50 per share. How much is your initial margin, given margin requirements of 40%? If the stock declines to $30 per share, what is your percentage gain or loss on the initial equity?
In: Finance
I own 100 IBM shares (priced at $120) and I expect the IBM stock price to decline by about 20% over the next 25 days. I decide to write one deep in-the-money call option contract with a maturity of 40 days against my IBM holdings. Is this an appropriate strategy for me, given my belief? Explain fully.
In: Finance
Q1. Uniform Distribution
You believe stock price will follow uniform distribution with mean of 100 and MAD 20. You are pricing a CALL option with strike at 110.
a. what is the mean and range of the distribution?
b. what is the probability that the call will be ITM at expiration (ie stock price ends above strike at 110)?
c. what is the conditional mean of stock price when CALL is ITM (aka stock price is above strike 110)?
d. what is the conditional CALL option average payment when the CALL is ITM?
e. what is the fair value of the CALL today, ie the unconditional average payment today?
In: Statistics and Probability
Standard Enterprises produces an output that it sells in a highly competitive market at a price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers, who can be hired on an as-needed basis in a labor market at a cost of $2,900 per worker (wage). Based on the following production data, how many workers should the firm employ to maximize its profits? (hint: completing the table below will give you the answer)
Machines | Workers | Output | Marginal Product of Labor | VMP Labor | Wage | |||||
2 | 0 | 0 | ||||||||
2 | 1 | 60 | ||||||||
2 | 2 | 100 | ||||||||
2 | 3 | 129 | ||||||||
2 | 4 | 148 | ||||||||
2 | 5 | 160 | ||||||||
2 | 6 | 168 | ||||||||
In: Operations Management
You buy 100 shares of Apple common stock at a price of $60.98. One quarter later, you collect a dividend of $1.73 per share and sell your stock for $67.44 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.)
Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a minus sign.
In: Finance
Mary Purchased 100 shares of sweet pea CO stock at a price of $47.49 6 months ago. she sold all stocks today for $46.33. during that period the stock paid dividends of $2.45 per share what is Mary's affective annual rate.
Tom purchased 100 shares of Dallia CO stock at a price
of $120.01 four months ago. he sold all stocks today for $124.68
during the year the stock paid dividends of $5.18 per share what is
tom's effective annual rate
In: Finance
I. Given: Qd = 1100 - (2)P Qs = 3P - 100 1. Equilibrium Price of good x 2. Equilibrium Quantity of good x 3. Price Elasticity of demand at Pe 4. Arc Elasticity where P = 250 and P = 200
In: Economics