A stock, priced at $47.00, has 3-month call and put options with exercise prices of $45 and $50. The current market prices of these options are given by the following:

Now, assume that you already hold a sizable block of the stock, currently priced at $47, and want to hedge your stock to lock in a minimum value of $45 per share at a very low up-front initial cost.

a) What hedge strategy from Chapter 7 would you recommend and what would you option transactions be to set up the holding (per 100 shares of stock that you already own) And, what would be the up-front cost to set up these option position?

b) What if the stock price falls appreciably over the next 3 months and ends up at $30. Relative to your starting point at time-zero when the stock was priced at $47, what is your dollar loss for the hedged position versus if you had not hedged and held the “long stock only” (again scaling by 100 shares of stock)? What would your percentage rate of return have been for your combined holdings (stock and options) from time-0 to time-T? What would your percentage rate of return have been for a comparable “long stock only” position over time-0 to time-T in this case? (Remember time-T is at option expiration).

c) Alternatively, what if the stock price had risen appreciably over the next 3 months and ends up at $65. Relative to your starting point at time-zero when the stock was priced at $47, what is your dollar gain for the hedged position versus if you had not hedged and held the “long stock only”? What would your percentage rate of return have been for your combined holdings (stock and options) from time-0 to time-T? What would your percentage rate of return have been for a comparable “long stock only” position over time-0 to time-T in this case?

#include <iostream>
#include <string>
#include <ctime>
using namespace std;


void displayArray(double * items, int start, int end)
{
        for (int i = start; i <= end; i++)
                cout << items[i] << " ";
        cout << endl;
}



//The legendary "Blaze Sort" algorithm.
//Sorts the specified portion of the array between index start and end (inclusive)
//Hmmm... how fast is it?
/*
void blazeSort(double * items, int start, int end)
{
        if (end - start > 0)
        {
                int p = filter(items, start, end);
                blazeSort(items, start, p - 1);
                blazeSort(items, p + 1, end);
        }
}
*/

int main()
{
        ////////////////////////////////////////////////////
        //Part 1:  Implement a method called filter.
        ////////////////////////////////////////////////////

        //Filter is a function that takes in an array and a range (start and end).
        //
        //Call the first item in the range the 'pivot'.
        //
        //Filter's job is to simply separate items within the range based on whether they are bigger or smaller than the pivot.
        //In the example array below, 13 is the pivot, so all items smaller than 13 are placed in indices 0-3.  The pivot is then placed at index 4, and all
        //remaining items, which are larger than the pivot, are placed at positions 5-10.  Note that the array is NOT sorted, just "partitioned" around
        //the pivot value.  After doing this, the function must return the new index of the pivot value.

        double testNumsA[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };

        //The filter will place all items <= 13 to the left of value 13, and all items large than 13 to the right of 13 in the array.
        int p = filter(testNumsA, 0, 10);
        cout << p << endl; //should be 4, the new index of 13.
        displayArray(testNumsA, 0, 10);  //should display something like this:  5 3 4.5 4 13 18.35 85 189 37.2 43 34.1

        //One more example:
        double testNumsB[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };
        p = filter(testNumsB, 2, 6);  //Here we are only interested in items from indices 2-6, ie, 43, 189, 4, 4.5, 18.35
        cout << p << endl; //should be 5
        displayArray(testNumsB, 0, 10); //Notice only indices 2-6 have been partioned:  13 34.1 18.35 4 4.5 43 189 85 3 37.2 5


        /////////////////////////////////////////////////////////////////////////////////
        //Part 2:  Uncomment "Blaze Sort".
        //Blaze Sort uses/needs your filter to work properly.
        /////////////////////////////////////////////////////////////////////////////////


        //Test if Blaze Sort correctly sorts the following array.
        double testNums[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };

        blazeSort(testNums, 0, 10);

        displayArray(testNums, 0, 10);

        /////////////////////////////////////////////////////////////////////
        //Part 3:  Test how fast Blaze Sort is for large arrays.
        //What do you think the run-time (big-Oh) of blaze sort is?
        /////////////////////////////////////////////////////////////////////

        //Stress test:
        int size = 100; //test with: 1000, 10000, 100000,1000000, 10000000
        double * numbers = new double[size];

        for (int i = 0; i < size; i++)
        {
                numbers[i] = rand();
        }

        clock_t startTime, endTime;

        startTime = clock();
        blazeSort(numbers, 0, size - 1);
        endTime = clock();

        displayArray(numbers, 0, size - 1);
        cout << "Blaze sort took: " << endTime - startTime << " milliseconds to sort " << size << " doubles."  << endl;

        ////////////////////////////////////////////////////////////////////
        //Part 4: Sort Moby Dick, but this time with Blaze Sort
        ///////////////////////////////////////////////////////////////////

        //////////////////////////////////////////////////////////////////
        //1) Create a second version of Blaze Sort that sorts arrays of strings
        //(instead of arrays of doubles).
        //2) Download whale.txt from the previous lab.  Read the words from the file into
        //an array, sort the array with Blaze Sort, and then write the sorted words to an output file.
        //
        //This time, it has to be fast!  Must finish in under 10 seconds.
        /////////////////////////////////////////////////////////////////

        return 0;
}

#include <iostream>
#include <string>
#include <ctime>
using namespace std;


void displayArray(double * items, int start, int end)
{
        for (int i = start; i <= end; i++)
                cout << items[i] << " ";
        cout << endl;
}



//The legendary "Blaze Sort" algorithm.
//Sorts the specified portion of the array between index start and end (inclusive)
//Hmmm... how fast is it?
/*
void blazeSort(double * items, int start, int end)
{
        if (end - start > 0)
        {
                int p = filter(items, start, end);
                blazeSort(items, start, p - 1);
                blazeSort(items, p + 1, end);
        }
}
*/

int main()
{
        ////////////////////////////////////////////////////
        //Part 1:  Implement a method called filter.
        ////////////////////////////////////////////////////

        //Filter is a function that takes in an array and a range (start and end).
        //
        //Call the first item in the range the 'pivot'.
        //
        //Filter's job is to simply separate items within the range based on whether they are bigger or smaller than the pivot.
        //In the example array below, 13 is the pivot, so all items smaller than 13 are placed in indices 0-3.  The pivot is then placed at index 4, and all
        //remaining items, which are larger than the pivot, are placed at positions 5-10.  Note that the array is NOT sorted, just "partitioned" around
        //the pivot value.  After doing this, the function must return the new index of the pivot value.

        double testNumsA[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };

        //The filter will place all items <= 13 to the left of value 13, and all items large than 13 to the right of 13 in the array.
        int p = filter(testNumsA, 0, 10);
        cout << p << endl; //should be 4, the new index of 13.
        displayArray(testNumsA, 0, 10);  //should display something like this:  5 3 4.5 4 13 18.35 85 189 37.2 43 34.1

        //One more example:
        double testNumsB[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };
        p = filter(testNumsB, 2, 6);  //Here we are only interested in items from indices 2-6, ie, 43, 189, 4, 4.5, 18.35
        cout << p << endl; //should be 5
        displayArray(testNumsB, 0, 10); //Notice only indices 2-6 have been partioned:  13 34.1 18.35 4 4.5 43 189 85 3 37.2 5


        /////////////////////////////////////////////////////////////////////////////////
        //Part 2:  Uncomment "Blaze Sort".
        //Blaze Sort uses/needs your filter to work properly.
        /////////////////////////////////////////////////////////////////////////////////


        //Test if Blaze Sort correctly sorts the following array.
        double testNums[] = { 13, 34.1, 43, 189, 4, 4.5, 18.35, 85, 3, 37.2, 5 };

        blazeSort(testNums, 0, 10);

        displayArray(testNums, 0, 10);

        /////////////////////////////////////////////////////////////////////
        //Part 3:  Test how fast Blaze Sort is for large arrays.
        //What do you think the run-time (big-Oh) of blaze sort is?
        /////////////////////////////////////////////////////////////////////

        //Stress test:
        int size = 100; //test with: 1000, 10000, 100000,1000000, 10000000
        double * numbers = new double[size];

        for (int i = 0; i < size; i++)
        {
                numbers[i] = rand();
        }

        clock_t startTime, endTime;

        startTime = clock();
        blazeSort(numbers, 0, size - 1);
        endTime = clock();

        displayArray(numbers, 0, size - 1);
        cout << "Blaze sort took: " << endTime - startTime << " milliseconds to sort " << size << " doubles."  << endl;

        ////////////////////////////////////////////////////////////////////
        //Part 4: Sort Moby Dick, but this time with Blaze Sort
        ///////////////////////////////////////////////////////////////////

        //////////////////////////////////////////////////////////////////
        //1) Create a second version of Blaze Sort that sorts arrays of strings
        //(instead of arrays of doubles).
        //2) Download whale.txt from the previous lab.  Read the words from the file into
        //an array, sort the array with Blaze Sort, and then write the sorted words to an output file.
        //
        //This time, it has to be fast!  Must finish in under 10 seconds.
        

        return 0;
}

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year:

Required:
1. Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system.
2. Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $11.70).
3. Determine the amount Treynor would report for its LIFO reserve at the end of the year.
4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000.

Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. (Round "Cost per Unit" to 2 decimal places.)

Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $11.70).

Determine the amount Treynor would report for its LIFO reserve at the end of the year.

Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the year-end adjusting entry for the LIFO reserve.

Note: Enter debits before credits.

De Anza College Accounting 1C online BEP Project Scott Osborne
First Name________________Last Name____________________
Please print first and last names as it shows on the attendance roster.
10 Homework Points
During the upcoming year De Anza Co. expects the following data:
Expected unit selling price is: $125
Expected unit variable cost is: $70
Expected total fixed costs are: $1,512,500
Required
1. Calculate breakeven point in both units and dollars. (Show work in blank space below.)
Round units to the nearest unit and round dollars to the nearest dollar.
2. Compute sales units required to realize income from operations of $630,000.
3. Construct a cost-volume-profit chart assuming maximum sales in the relevant
range of 40,000 units. ( Use the available graph template below.)
Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs,
Total Costs, Profit Area, Loss Area, and Break Even Point.

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year:

Required:
1. Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system.
2. Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $11.70).
3. Determine the amount Treynor would report for its LIFO reserve at the end of the year.
4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000.

Department P had the following information regarding equivalent units of production, which were determined using first-in-first-out process costing method:

                                                                                                            Equivalent Units of Production

The cost information is as follows:

Required:

1. What were the stages of completion of the work in process with respect to material and conversion cost at the beginning of this period? (Please show your computation)
2. What were the stages of completion of the work in process with respect to material and conversion cost at the end of this period? (Please show your computation).
3. Using the first-in-first-out process costing method, determine:(Please show your computations fully)  

1. The cost of the 28,000 units completed and transferred; and
2. The cost of work-in-process ending inventory.

4. Assuming that the weighted average costing method had been used to compute the equivalent units of production by Department P, determine:

1. What the equivalent units of production would have been for materials and conversion cost (Please show all your computations completely) and
2. The cost per unit for materials and conversion.

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year:

Required:
1. Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system.
2. Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $12.60).
3. Determine the amount Treynor would report for its LIFO reserve at the end of the year.
4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000.

3 Fraley Chemical Company accounts for its production activities using first-in, first-out (FIFO) process costing. Inventory records for the process show a January 1 work-in-process inventory of 10,000 gallons, 80 percent complete as to materials and 40 percent complete as to conversion. The January 31 inventory consisted of 15,000 gallons, 60 percent complete as to materials and 20 percent complete as to conversion. In January, 40,000 gallons were completed and transferred to the finished goods inventory. Costs in the Work-in-Process Inventory account in January are as follows: Materials Conversion Total Costs in beginning inventory $ 1,920 $ 672 $ 2,592 Costs added this period 8,405 5,694 14,099 Total cost to be accounted for $10,325 $6,366 $16,691 a. Using first-in, first-out (FIFO) process costing, calculate the equivalent units (in gallons) for January. b. Using first-in, first-out (FIFO) process costing, calculate the cost per equivalent unit for January. (keep answers to 3 decimal points for calculation of part c) c. Using first-in, first-out (FIFO) process costing, calculate the cost of the 40,000 gallons that were completed and transferred out in January. Show your calculations.

Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed cost.   Below are budgeted income statements at different team levels, use the information to answer the questions below:

Using the above data and the high/low method, answer the following questions:

Determine the variable cost per unit

Determine the fixed cost

What is the cost equation?

Estimate the total cost for 20 teams

In addition to the above data, assume the company has the following sales. Answer the following questions

What is the revenue generated per team?

What is the per unit contribution margin?

What is the contribution margin ratio?

Compute break-even point in dollars and in units (round to the next whole number) for each of the three scenarios. Then, choose a scenario for your team.

If CAVALRY wants to have net income of $100.00 from this event, how many teams are needed?

If CAVALRY estimates 20 teams, determine the Margin of Safety in sales dollars.

Perform a sensitivity analysis to determine how an increase in team revenue of $500 would impact Net Income?

If the team revenue changed to $120 per team, and all other expenses remained the same as calculated in your cost equation, what is the new break-even in units?

If the variable costs changed to $50 per team (the fix costs remained the same as in your cost equation and team revenue remained at $100 per team), what is the new break-even in units?

If the fixed costs changed to $980, (variable expenses remained the same as in your cost equation, and sales price remained at $100 per team), what is the new break-even in units?