Disney, ticker DIS, closed at around $110 on 5/8. You believe its share price is going to stay in a narrow range around $110 for the next year. To speculate on your belief, you decide to sell a straddle. The straddle strategy is entering the same position in both a call and a put sharing the same underlying, expiration, and strike price. When you sell a straddle, you are selling both the call and the put.

The price of a call option with a one-year expiration written on Disney with an exercise price of $110 is $17. The current stock price of Disney is $110 and the risk-free rate is 10% per year.

(a) What must be the price of the one-year put on the same stock with the same strike price?

(b) Construct your position table of the selling of the straddle strategy. Again, you are selling both the call and the put with the same strike price of $110.

(c) Plot your position diagram for your strategy. Plot one line for the payoff and one line for the profit. To figure out your profit, use the call price given ($17) and the put price you solved in part (a).

(d) At what stock price at expiration (S_T) do you make the most money? And what is your maximum profit on this strategy?

(e) What are the breakeven prices for this strategy, that is, how far can the stock price move in either direction before you lose money?

A closed economy can be described by the long-run classical model: Y = 5K 1/4L 3/4 C = 23500 + 0.6(Y – T) – 1200r I = 15000 – 800r MPK = 1.25K – 3/4L 3/4 MPL = 3.75K 1/4L –1/4 In this economy, there are two productive factors, K and L and both factor inputs are fully employed. The stock of capital and the supply of labour are equal to 50625 and 10000 respectively. Initially, the level of government spending represents 24% of the initial national income. The government runs a budget deficit, and the size of the budget deficits is equal to 4% of total output. Note: r represents the real interest rate and is measured in percentage points (for example, if r = 10, then this is interpreted as r = 10%). Keep your answers to 3 decimal points if needed. a) Compute the long-run equilibrium levels of consumption, national savings and real interest rate. Also, find the long-run equilibrium real wage for labour and real rental price of capital. (5 points). Suppose the outbreak of COVID-19 reduces spending by both households and businesses. As a result, autonomous consumption and autonomous investment change by 6% and 5% respectively. b) Find the new long-run equilibrium levels of national savings and real interest rate, real wage, and real rental price of capital. (4 points) c) Compare your answers in parts (a) & (b), what happens to the (equilibrium) level of investment? (i.e., increase/decrease/remain unchanged)? Explain, in words only, why the variable changes or remains unchanged. (4 points) d) Show your answers for parts (a) & (b) in three diagrams (that depict the loanable funds market, the labour market, and the rental market for capital in long-run equilibrium). Be sure to identify which points on your diagrams are the long-run equilibria for part (a) & (b) respectively. No written explanation is required. (6 points) e) Suppose the government wants to promote the level of national savings to 8250 via a change government spending. Find the change in the level of government spending that will accomplish this goal. What happens to the budget balance (i.e., improves/deteriorates/no change)? (6 points)

1. A Common stock of General Motors closed at $38.16 today 7/03/19 The company paid $0.40 last quarter and the growth rate is expected to be 5.5%. What will be the investor’s price assuming she has a required rate of 9.5%? What would be the yield the yield on the investment based on an annual (4x$0.40) dividend? Would she buy, sell, or hold if she is interested in trading for a profit? Explain fully.

2. AT&T 10-year bonds paying 8% currently sells for 0.96 which is equivalent to $960 in dollar terms.

a. What is the current yield?

b. What is the yield to maturity?

c. What is the investor’s price assuming she is requiring 11% return

d. Would she invest in the bond? WHY?__________________

1)Lexical heads are typically

Select one:

a. closed class lexical items

b. phonologically null

c. no class lexical items

d. open class lexical items

2)The subject of the sentence `the woman with a big dog on a flimsy leash in the public park behind my house saw a horse' is:

Select one:

a. the woman with a big dog

b. the woman

c. the woman with a big dog on a flimsy leash in the public park behind my house

d. the woman with a big dog on a flimsy leash in the public park

3)How many PPs are there in the sentence `the woman with a big dog on a flimsy leash in the public park behind my house saw a horse'?

Select one:

a. 3

b. 4

c. 2

d. 1

4)Which sequences of words can we perform 'it-substitution' on in the following sentence: `the proposal of Trump is very stupid'?

Select one:

a. proposal of

b. the proposal of Trump

c. Trump is

d. the proposal

In what ways have each of the following affected the costs of health care in the U.S.?

- The health insurance industry -

Advances in medical technology -

Changes in U.S. demographics -

Government support for health care -

Consumer expectations

Discuss student views regarding the tradeoff between the development of technology that results in costly innovations and the necessity of controlling the accelerated growth in costs by such methods as trimming insurance benefits and increasing the amount of cost-sharing by patients.

In the event of an outbreak such as coronavirus there is a loss in the production of goods and services due to fear of contraction. Assuming no exogenous variables changes in the economy, using the four standard AS/AD models show the response of the economy to the loss in technology

Discuss if any of your credit or debit cards or personal documents embedded with RFID technology? If so, what precautions will you take to block the signals from scanners? (PLEASE DO NOT HAND WRITE ANSWER)

Use technology to construct the confidence intervals for the population variance sigmasquared and the population standard deviation sigma. Assume the sample is taken from a normally distributed population. c=0.95​, s=39​, n=16