Topic: Productivity cost and contingent market valuation.

Suppose the faith-based organization has three leaders: - a 52 year old, African American male physician in private practice who also holds a PhD; - a 29 year old Native American female lawyer also holds and MBA and who works for a large firm that specializes in medical malpractice claims; and - a 38 year old, Caucasian male with an MA in art history who works as cook at a local restaurant.

Suppose that each of them uses their free time to be a group leader at the faith- based organization. Each person spends three hours a week as a group leader.

Question: How might a researcher following a more traditional human capital approach put a value on each person’s time?

Among other things, President Obama has often been criticized by Republicans for having increased government regulations which they claim has harmed American businesses.Since taking office, President Trump has reversed many of these regulations and some believe that our ongoing economic expansion could partly be attributed that. We do know that in just about all market economies there are laws and regulations that governments impose on business activities. What are the reasons behind such regulations? To what extent are they necessary? Do you think American businesses were or still are over-regulated?

Note: Try to be as specific as you can in your arguments. For example, if you think there are too many regulations, identify the type of regulations that you would get rid of and explain why.

The price of a European call that expires in six months and has a strike price of $30 is $2. The underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in five months. Risk-free interest rates (all maturities) are 10%. What is the price of a European put option that expires in six months and has a strike price of $30?

The price of an American call on a non-dividend-paying stock is $4. The stock price is $31, the strike price is $30, and the expiration date is in three months. The risk-free interest rate is 8%. Derive upper and lower bounds for the price of an American put on the same stock with the same strike price and expiration date. What are the percentage changes in the values of the two portfolios for a 5% per annum increase in yields?

Smartphone adoption among American younger adults has increased substantially and mobile access to the internet is pervasive. 17% of young adults, ages 18-29, who own a smartphone are “smartphone – dependent”, meaning that they do not have home broadband service and have limited options for going online other than their mobile device.

If a sample of 10 American young adults is selected what is the probability that

a. 3 are smartphone-dependent?

b. At least 3 are smartphone-dependent?

c. At most 6 are smartphone-dependent?

d. If you selected the sample in a particular geographical area and found that none of the 10 respondents are smartphone-dependent, what conclusions might you reach about whether the percentage of smartphone-dependent young adults in this area was 17%?

PLEASE ANSWER ALL PARTS

Write a python program. Grades are values between zero and 10 (both zero and 10 included), and are always rounded to the nearest half point. To translate grades to the American style, 8.5 to 10 become an “A,” 7.5 and 8 become a “B,” 6.5 and 7 become a “C,” 5.5 and 6 become a “D,” and other grades become an “F.” Implement this translation, whereby you ask the user for a grade, and then give the American translation. If the user enters a grade lower than zero or higher than 10, just give an error message. You do not need to handle the user entering grades that do not end in .0 or .5, though you may do that if you like – in that case, if the user enters such an illegal grade, give an appropriate error message.

The 58th annual convention of the American Legion was held in Philadelphia from July 21 until July 24, 1976. People at the convention included American Legion delegates, their families, and other Legionnaires who were not official delegates. Between July 20 and August 30, some of those who had been present became ill with a type of pneumonia that was subsequently named Legionnaires' disease. No one attending the convention developed the disease after August 30th. The number of delegates who developed Legionnaires' disease during the period of July 20 to August 30 are as follows:

Developed Legionnaires' Disease

Determine if the null hypothesis is true:There is no association between Delegates and Legionnaires' Disease.

5. The Civilian Conservation Corps and the Public Works Administration were

a. socialist experiments to reallocate property and resources in the American economy.

b. government agencies whose employees were illegally ordered to support the Democratic Party.

c. New Deal initiatives that were struck down by the Supreme Court as unconstitutional.

d. New Deal programs that provided jobs for unemployed individuals.

6. One long-lasting effect of New Deal legislation was to

a. sharpen the distinction between liberals and conservatives over the role and responsibilities of government.

b. prove that government could end a depression and otherwise control the direction of the economy if it chose to.

c. reinforce the popular view that politicians and government officials could not be trusted.

d. undermine the drive for equality for women and the members of minority communities in American society.

Question 2. Short answers. Use graphs where appropriate.

1. Explain why is the short run labor demand curve less elastic relative to the long run labor demand curve. (7.5 points)

2. How would imposing a minimum wage above the market-clearing wage affect employment in a competitive labor market? Use a graph to illustrate this. (7.5 points)

3. Many immigrants and many American high school dropouts possess very few skills. What impact will these low-skill immigrants likely have on the labor market opportunities of American high school dropouts? (7.5 points)

4. Comment on this statement: “If we deported all undocumented persons who are now in the United States, our total national unemployment would decline by the same number of people.” (7.5 points)

Use DerivaGem to calculate the value of an American put option on a non-dividend-paying stock when the stock price is USD 30, the strike price is USD 32, the risk-free rate is 5% p.a. continuously compounded, the volatility is 30% p.a. and the time to maturity is 1.5 years. (Choose ‘Binomial American’ for the option type and 50 time steps.) (See textbook Chapter 13 for supporting theory and materials)

1. Calculate the option’s intrinsic value. Calculate the option’s time value.
2. What would a time value of zero indicate? What is the value of an option with zero time value?
3. Using a trial and error approach, calculate how low the stock price would have to be for the time value of the option to be zero. (use 50 time steps)

1. Price a European Call & Put and an American Put on a stock that is currently selling at $25 and has a volatility of 25%. The options all have a life of 7 months and a strike price of $26. The 7-month risk free rate is 3% per annum with continuous compounding. a. Use a 12-step binomial tree to price all 3 options b. Use a 13-step binomial tree to price all 3 options c. Use the Black-Scholes-Merton formula to price the European options

2. Use the information in question 1, but now the stock will pay a dividend of $1 in 3 months from today. Price European Call & Put and American Call & Put using a 7-step binomial tree.

Looking for answer and explanation in Excel please