We want to price options using the binomial lattice. The current stock price is 104 and the strike price is 100. Assume that the stock up-trend rate is u=1.2 with probability p=0.4 and the down-trend rate is d=0.8 with probability 1-p=0.6. The annual risk-free rate is r=0.02. Assume that the lenth of a period is one month.

1. Construct a binomial lattice that gives the price of a 5-month European call option.

2. Construct a binomial lattice that gives the price of a 5-month American put option.

Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,188. FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,524.57. What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.)

$378.00

$569.66

$1,136.89

$56.00

$133.23

A Greenville Utility worker is using a 10 lb sledgehammer behind Ward as part of the construction. Keeping his wrist straight, he swings the sledgehammer through 85° of elbow extension with each swing. His forearm is 40 cm long, and the sledgehammer is 0.8 m long.

a. Find the linear displacements of his hands and the head of the sledgehammer

b. Find the angular displacements of his hands and the head of the sledgehammer

c. Find the linear velocity of his hands and the head of the sledgehammer

d. Find the angular velocity of his hands and the head of the sledgehammer

A 3-phase, 5 kVA, 208 V, four-pole, 60 Hz, Y-connected synchronous machine has negligible stator
winding resistance and a synchronous reactance of 8
per phase at rated terminal voltage. Themachine is operated as a generator and delivers rated kVA at 0.8 power factor lagging.

(a) Determine the excitation voltage,
(b) Find the power angle,
(c) Draw the phasor diagram,
(d) Find the stator current assuming that the field excitation current is now increased by 20 %
(without changing the prime mover power).

Suppose a simple random sample of size n=75 is obtained from a population whose size is N=15,000 and whose population proportion with a specified characteristic is p=0.8.

a) Determine the mean of the sampling distribution of p with caret.

Determine the standard deviation of the sampling distribution of p with caret.

b) What is the probability of obtaining x=66 or more individuals with the​ characteristic? That​ is, what is ​P(p with caret greater than or equals 0.88)?

What is the probability of obtaining x=57 or fewer individuals with the​ characteristic? That​ is, what is ​P(p with caret less than or equals 0.76​)?

TASK:

Each of the following generators is going to supply a load of 10kw at a power factor of 0.8 (If AC, if DC 1) for 24hrs, each of them will run at 3000rpm. Both diesel and petrol have energy values of 45MJ/kg but the efficiency of petrol engines is 25% whilst the efficiency of diesel engines is 45%. Calculate the fuel burn rate in kg/hour and the efficiency of each. Use the burn rate to calculate the cost of fuel and add that to the daily hire rate to get a total cost of the generator for 24hrs and hence say which would be the most suited to the job.

Assume that HCA is evaluating the feasibility of building a new hospital in an area not currently served by the company. The company's analysts estimate a market beta for the hospital project of 1.1, which is somewhat higher than the 0.8 market beta of the company's average project. Financial forecasts for the new hospital indicate an expected rate of return on the equity portion of the investment of 20 percent. If the risk-free rate, RF, is 7 percent and the required rate of return on the market, R(Rm), is 12 percent, is the new hospital in the best interest of HCA's shareholders? Explain your answer.

Consider the following Keynesian Consumption Function: C = C¯ + cY (1) where, C¯ = 1000 and c = 0.8.

i.Draw a figure corresponding to Equation 1 and call that Figure 1.

ii. Define MPC. What is the value of MPC in Equation 1? Interpret your answer.

iii. Now assume that Y = 50000. How much will be Consumption (C)? What is the value of APC? Can you show the APC in Figure 1?

iv. What is the Consumption Puzzle? Explain it using both the rejection of ”secular stagnation” and the finding of Simon Kuznets

Use the table for the​ question(s) below.

Consider the following three individuals portfolios consisting of investments in four​ stocks:

Assuming that the risk-free rate is​ 4% and the expected return on the market is​ 12%, then required return on​ Peter's Portfolio is closest​ to:

A.

​8%

B.

​12%

C.

​9%

D.

​10%