the stock price is currently $80. The stock price annual up-move factor is 1.15. The risk free rate is 3.9%. Compute the value of a 2 year European call option with an exercise price of $62 using a two-step binomial model
In: Finance
Consider an option on a non-dividend-paying stock when the stock price is $48, the exercise price is $46, the risk-free interest rate is 6% per annum, the volatility is 20% per annum, and time to maturity is four months. (a) What is the price of the option if it is a European call? (b) What is the price of the option if it is a European put? (c) What is the price of the option if it is an American call? (d) How would the result of a) change if a dividend of $1 is expected in two months? How would the result of a) change if a dividend of $2 is expected in six months?
In: Finance
Suppose the gold spot price is $300/oz., the 1-year forward price is $310.686, and the continuously compounded risk-free rate is 5%. In class, we neglect the convenience yield for gold. In reality gold can may be lent and borrowed. Some entities operating in the wholesale gold market do lend gold and earn interest on such transactions. To sum up, there is a convenience yield for gold and it takes the name of “lease rate”.
(a) What is the lease rate?
(b) What is the return on a cash-and-carry if you cannot loan out the gold (i.e. you do not have access to the wholesale gold market)?
(c) What is the return on a cash-and-carry if you do loan out the gold, earning the lease rate?
In: Finance
In: Economics
Five years ago, Miguel invested a stock with price $35 per share. The stock price at the end of every year is as the following. Assumes no dividends paid during these years. Year Price 0 35 1 37 2 36 3 40 4 42 5 45 a) What was Migule’s holding period return on this stock for last five years? b) What was Migule’s annual internal rate of return? c) What was the standard deviation of returns of Migule’s investment?
In: Finance
In the news, we have seen or read several articles about price gouging. What is price gouging? Give me an example of price gouging that has occurred as a result of the coronavirus. Should our government take action to combat price gouging or should we rely on competition and our free market? Give me your best arguments for government action against price gouging. Then please give me your best arguments against government action against price gouging.
In: Operations Management
Write a menu-driven program to handle the flow of widgets into and out of a warehouse.
The warehouse will have numerous deliveries of new widgets and orders for widgets
The widgets in a filled order are billed at a profit of 50 percent over their cost
Each delivery of new widgets may have a different cost associated with it
The accountants for the firm have instituted a last-in, first-out system for filling orders
the newest widgets are the first ones sent out to fill an order and the most recent orders are filled first
partial shipments allowed
10 widgets were ordered and warehouse has only 4 available, ship 4, the remainder 6 will be shipped later
Assign unique numbers to each order and each delivery
This function of inventory can be represented using two stacks: orders-to-be-filled and widgets-on-hand. When delivery of new widgets is received, any unfilled orders (on the orders-to-be-filled stack) are processed and filled. After all orders are filled, if there are widgets remaining in the new delivery, a new element is pushed onto the widgets-on- hand stack. When an order for new widgets is received, one or more objects are popped from the widgets-on-hand stack until the order has been filled.
If the order is completely filled and there are widgets left over in the last object popped, a modified object with the quantity updated is pushed onto the widgets-on-hand stack.
If the order is not completely filled, the order is pushed onto the orders-to-be-filled stack with an updated quantity of widgets to be sent out later.
After an order is fully or a partially filled display the following in the format shown below:
order number
quantity ordered
quantity shipped
price per widget and the total cost for all widgets in the order
indicate whether there are any widgets remaining to be sent out at a later time.
After delivery is processed, display information about each order that was filled with this delivery.
Keep track of the number of widgets in stock and the number of widgets shipped.
Make sure each function definition is preceded by a description, post/preconditions
Create menu options to display the details of the inventory on hand ( delivery stack) and the details of the outstanding orders (shipment/order stack)
You may implement the stack as an array or a linked list
Well format the output: all numbers should be right-aligned; see the sample below
Create a test plan ( hand-written or typed); the test plan has to be approved for the instructor before you can submit the lab.
Order Number 123
Qty to Ordered 25
Qty Shipped this Shipment 10
Qty to be Shipped 5
Total Cost to the Warehouse 28.25
Total Cost to the Customer 42.38
Profit this Shipment 14.13
Shipment details
Delivery # Qty Shipped Unit Price Cost to the Warehouse Cost to the Customer
621 5 2.5 12.5 18.75
620 3 1.75 5.25 7.88
619 2 5.25 10.5 15.75
Modify lab #5 Backwards Warehouse to work on first come first serve basis, first in - first out. The newest widgets are the last ones sent out to fill an order and the oldest and back orders are filled first. Use queue data structure implemented as a linked list..
The programming language will be in c++,but i need assistance in in the written code as well as having a test plan ( hand-written or typed); the test plan has to be approved for the instructor before you can submit the lab and for this program we will have the user one have one item and not multiple items and my professor claried that i use arrays for this lab and not linked list. the ouput need to match exactly what is displayed
Order Number 123
Qty to Ordered 25
Qty Shipped this Shipment 10
Qty to be Shipped 5
Total Cost to the Warehouse 28.25
Total Cost to the Customer 42.38
Profit this Shipment 14.13
Shipment details
Delivery # Qty Shipped Unit Price Cost to the Warehouse Cost to the Customer
621 5 2.5 12.5 18.75
620 3 1.75 5.25 7.88
619 2 5.25 10.5 15.75
In: Computer Science
You decide to form an entity to invest in Real Estate. You call the LLC Robak’s Investment. You find an attractive investment in a 300,000 Sf commercial building with a purchase price of $50,000,000. In order to fund this property, you find 10 partners who’s willing to contribute $2,000,000 each. You put down $1,000,000 for working capital for the property and borrow the remaining $30,000,000 at 5% amortized over 30 years and the mortgage is paid monthly. (Note: The funds raised for an investment is above the purchase price as you need working capital to operate the business). The deal closes on 12/31/2018 and your accountant attributes 30% of the investment value to land and the remaining to the building. The building depreciates over 39 years. The tenants are spread evenly. Meaning there are 3 tenants, each occupying 100,000 Sf. Each tenant pays rent of $20 Sf/Yr (Note: The tenants were in the property before you assumed control so there were no leasing commissions or concessions). Rents are paid monthly. Costs are as follow: Property taxes are 2% of the Fair Market Value (building was assessed at $50,000,000) when you bought it. Taxes are paid twice a year at the end of March and September and it is for the following 6 months (Note: the previous landlord paid for the property taxes for Jan 2019-March 2019, and is reimbursed by the purchase price of the property, this assumption is valid for all of the costs)~(Also Note: this will generate a prepaid expense). Insurance costs are $1.00 Sf/Yr paid at the end of the year. Common area utilities are $1.50 Sf/Yr. Repairs and Maintenance is $0.75 SF/Yr. All of the costs are first paid for by the landlord but reimbursed by the tenant (assume 100% reimbursement and no bad collection). There is also a management fee equal to 2% of total revenue. In July of 2019, there were leaks in the roof. As a result, you re-did the roof for $300,000. It was completed at the end of July, and your accounting deemed it as a capital improvement lasting for 7 years. The parking lot was getting weary so you re-pave it for $500,000 at the end of September 2019 and it was deemed as a capital improvement lasting for 7 years. Recall that the depreciation for the 1st year on these improvements will be for a part of the year. Make a Balance sheet for 1/1/2019. Then make an Income Statement (for period of 2019, then a Cash flow Statement (2019), and a Balance sheet (ending 2019). Taxes are 21%.
(Note: These are GAAP statements not Finance modeling statements). (It may be helpful to think of the various components of this problem and create separate worksheets for each of the major elements, such as Terms of the Deal, Rent Revenue, Costs, Amortization Schedule and Depreciation. This will streamline your calculations and make it easier to create the financial statements.)
In: Finance
C++ Pie bakery
our bakery makes 8 kinds of pie, and receives orders for these pies from on-line buyers. The program you’ll write for this lab knows the price of each pie, so as each new order is received, it’s possible to know how much money the bakery should be receiving.
The program must read in lines of input which have two fields: a pie type and a quantity. With this, the program needs to update the quantity of that type of pie, adding the new order to those already received. You already have code that you’ve written for previous labs that uses getline() and splits the line read in into two separate parts: you get to re-use that here, since you have the same work to do – breaking an input string into two substrings, the first is the name of a kind of pie string and the second is the quantity int.
The program you are writing would be part of a larger system used by the bakery to track and schedule its baking. That’s good for you because it means that the input your program reads is guaranteed not to have bogus order numbers or pie types. A sample input line looks like:
raspberry 10
When the program reaches the end of input it prints out, for each type of pie, the quantity ordered and the total price of that number of those pies. After that it prints out the grand total of all orders (total number of pies, total price).
One problem you face is mapping pie types as strings (how you read them in) to the int index of the array element holding the struct for that pie type. For example, you might read in ”apple” and need to figure out that it’s in array element 3. You must use a function to handle this.
To make life a bit easier, you should initialize an array of struct with these pie types and prices:
peach lemon pumpkin blueberry apple raspberry strawberry cherry
$3.75 $4.50 $5.75 $4.25 $3.70 $6.35 $5.65 $5.20
Of course, you’ll need more than just these two fields in your
struct.
A sample run with 100 individual pie orders might produce output
like this.
Orders for peach: Orders for lemon: Orders for pumpkin: Orders for blueberry: Orders for apple: Orders for raspberry: Orders for strawberry: Orders for cherry:
115 value is $ 431.25 128 value is $ 576.00 75 value is $ 431.25 75 value is $ 318.75 71 value is $ 262.70 89 value is $ 565.15 122 value is $ 689.30 53 value is $ 275.60
Grand total: 728 pies for $3550.00
You can test your program with data you type in, or on a test data file you create.
In: Computer Science
Substantial uncertainty exists regarding the causal effect of health insurance on the utilization of care. Most studies cannot determine whether the large differences in healthcare utilization between the insured and the uninsured are due to insurance status or to other unobserved differences between the two groups. In this paper, we exploit a sharp change in insurance coverage rates that results from young adults “aging out” of their parents’ insurance plans to estimate the effect of insurance coverage on the utilization of emergency department (ED) and inpatient services. [In the US, children are eligible for insurance coverage through their parents’ insurance only up to their 23rd birthday, at which point they lose eligibility.] Using the National Health Interview Survey (NHIS) and a census of emergency department records and hospital discharge records from seven states, we find that aging out results in an abrupt 5 to 8 percentage point reduction in the probability of having health insurance. We find that not having insurance leads to a 40 percent reduction in ED visits and a 61 percent reduction in inpatient hospital admissions.
In: Economics